| Purchase Price | $3,010,000 |
|---|---|
| Annual Rental Income | $176,085 |
| Cap Rate | 5.85% |
| Lease Term | 18 Years |
| City | Ocala MSA |
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Freddy’s Frozen Custard & Steakburgers Net Lease Investment – Ocala MSA
Single-Tenant QSR Investment in a High-Growth Florida Market
This offering presents the opportunity to acquire a single-tenant Freddy’s Frozen Custard & Steakburgers property located in the heart of a rapidly expanding corridor within the Ocala, Florida metropolitan statistical area (MSA). The asset is secured by a long-term absolute triple-net lease with zero landlord responsibilities, providing truly passive income backed by one of the nation’s fastest-growing quick-service restaurant (QSR) brands. With strong traffic counts, proximity to national retailers, and steady residential development nearby, this asset offers durable performance in a business-friendly and tax-advantaged state.
Freddy’s has emerged as a leading national player in the premium burger and frozen dessert category, and its expansion across the Southeast reflects increasing brand recognition and operational efficiency. This asset, positioned within a growing Florida market, offers investors stable cash flow, long-term tenant commitment, and an irreplaceable retail location supported by strong real estate fundamentals.
Tenant Overview – Freddy’s Frozen Custard & Steakburgers
Freddy’s Frozen Custard & Steakburgers is a national fast-casual brand that has grown to over 500 locations across 35+ states since its founding in 2002. Known for its cooked-to-order steakburgers, Vienna beef hot dogs, crispy shoestring fries, and rich frozen custard, Freddy’s blends a nostalgic mid-century design with modern operational models focused on speed, consistency, and customer loyalty. The brand has built a passionate following and continues to see strong unit-level economics in both suburban and secondary markets.
In recent years, Freddy’s has been aggressively expanding through a mix of corporate locations and franchise development. Backed by private equity ownership, the brand has accelerated site rollout, launched new prototypes, and invested heavily in digital infrastructure, including mobile ordering, loyalty programs, and a proprietary app platform. Locations typically feature a dual-lane drive-thru, streamlined kitchen layouts, and optimized order flows—allowing for high throughput with minimal labor dependency.
The brand continues to target strong demographic regions throughout Florida, with a focus on emerging MSAs supported by household growth, family-oriented communities, and year-round traffic. Freddy’s flexible store formats and value-oriented positioning allow it to compete successfully with legacy burger chains and newer fast-casual entrants.
Ocala MSA – Fast-Growing Florida Market with Expanding Infrastructure
The Ocala MSA is located in Central Florida and has consistently ranked among the state’s fastest-growing regions by population and new home permits. The area is characterized by steady in-migration, affordable housing, and a rapidly diversifying economy that includes healthcare, distribution, equine industries, education, and light manufacturing. The metro’s central location provides access to key Florida corridors, while ongoing infrastructure investments are driving both residential and commercial development.
Major employers in the region include healthcare systems, public education, regional logistics companies, and professional services firms. The area serves as a key retail and medical hub for surrounding counties, and its consistent population growth continues to attract national retailers, grocers, and QSR tenants.
The immediate trade area surrounding the property includes high-performing commercial corridors with traffic counts exceeding 30,000 vehicles per day. National retailers, grocery-anchored centers, medical offices, and regional employers support a stable and growing base of daily traffic. The continued expansion of residential subdivisions and multifamily housing nearby further enhances long-term trade area strength.
Absolute Triple-Net Lease – Zero Management Investment
The lease is structured as an absolute triple-net (NNN) agreement, with the tenant responsible for all property operating expenses including taxes, insurance, and maintenance. This lease type provides investors with predictable, long-term income and no management responsibilities. The agreement includes built-in rental increases, supporting inflation-protected cash flow and enhancing internal rate of return over the hold period.
The tenant’s commitment to the location is evidenced by a modern building design, investment in drive-thru infrastructure, and strong unit performance metrics. This makes the property an ideal fit for investors seeking long-term, stabilized yield without operational involvement.
Whether for 1031 exchange placement, estate planning, or portfolio diversification, this Freddy’s location offers credit-backed income from a nationally recognized brand with multi-decade site potential.
Strategic Commercial Location with Strong Retail Synergy
The property is positioned in a highly trafficked suburban retail node featuring a complementary mix of grocery, fuel, banking, healthcare, and daily-needs retailers. The corridor attracts a wide range of consumer segments throughout the week, with steady morning, mid-day, and evening demand supported by regional employment, school traffic, and residential commuter patterns.
Surrounding national co-tenants include a mix of discount grocers, pharmacy chains, coffee brands, auto service retailers, and additional QSR users. This synergy creates a consistent customer flow and supports destination-level traffic for the broader center.
Freddy’s brand positioning as a quality, value-forward alternative to traditional fast food is particularly well-suited to suburban corridors with family households, young professionals, and retirees—demographics that are well-represented throughout this region. The nearby presence of medical clinics, large retail anchors, and community infrastructure further supports site viability over the long term.
Florida – Tax-Free Income and Long-Term Demand Fundamentals
Florida remains one of the most sought-after markets in the country for net lease investment due to its lack of state income tax, population growth, and institutional-grade real estate fundamentals. The state continues to experience migration from high-tax states, business relocation activity, and rising property values—driven by favorable governance, job creation, and lifestyle amenities.
Florida’s regulatory environment supports new development, lease enforcement, and landlord protections, creating a favorable climate for passive real estate ownership. Demand for single-tenant retail assets in Florida remains high, and properties located in growing metros continue to attract significant interest from national and international capital sources.
Within the Central Florida region, well-located QSR assets leased to high-growth tenants like Freddy’s are in limited supply and are increasingly being targeted for long-term income holds, especially in corridors with ongoing residential growth and commercial demand drivers.
Demographics and Trade Area Strength
Freddy’s ideal customer profile—families, young professionals, and retirees—mirrors the demographic profile of this corridor. Its mid-price positioning, nostalgic branding, and consistent service model make it a top choice among residents looking for comfort food in a clean, familiar setting.
Investment Highlights
Conclusion
This Freddy’s Frozen Custard & Steakburgers property located within the Ocala MSA offers investors the opportunity to acquire a fully passive, high-quality net lease asset backed by one of the fastest-growing QSR brands in the country. With strong trade area fundamentals, a drive-thru-optimized prototype, and long-term lease in place, the asset delivers predictable income and long-term security in one of Florida’s top-performing secondary markets.
As the demand for passive, income-generating real estate continues to increase, single-tenant QSR assets with essential-use tenants in high-growth regions like Central Florida will remain a highly sought-after investment class. This Freddy’s location offers the rare combination of tenant growth, real estate quality, and long-term demographic strength—making it a strategic acquisition for investors seeking durable cash flow in a tax-efficient state.