| Purchase Price | $3,090,000 |
|---|---|
| Annual Rental Income | $180,765 |
| Cap Rate | 5.85% |
| Lease Term | 19 Years |
| City | Nashville MSA |
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Freddy’s Frozen Custard & Steakburgers Net Lease Investment – Nashville MSA
Single-Tenant Net Lease in a High-Growth Southeastern Metro
This offering presents the opportunity to acquire a single-tenant Freddy’s Frozen Custard & Steakburgers property located within the Nashville, Tennessee metropolitan statistical area (MSA), one of the fastest-growing regions in the country. The property is backed by a long-term absolute triple-net lease that requires zero landlord responsibilities, delivering passive, inflation-hedged income from a nationally recognized and rapidly expanding quick-service restaurant (QSR) brand.
Strategically situated within a vibrant suburban retail corridor, the site benefits from strong traffic counts, high visibility, and robust demographic growth. With Nashville’s ongoing population surge, expanding economic base, and Tennessee’s tax-friendly environment, this offering combines stable yield, tenant strength, and long-term market appreciation potential.
Tenant Overview – Freddy’s Frozen Custard & Steakburgers
Freddy’s Frozen Custard & Steakburgers is a national fast-casual restaurant brand known for its made-to-order steakburgers, all-beef hot dogs, crispy fries, and fresh frozen custard desserts. Since its founding in 2002, Freddy’s has grown to over 500 locations across the United States, consistently ranking among the fastest-growing brands in the QSR category.
The company blends nostalgic Americana design with a highly efficient operational model, featuring dual-lane drive-thrus, digital menu systems, mobile ordering, and compact kitchen layouts that reduce labor cost and boost throughput. Freddy’s operates under a hybrid structure of corporate stores and franchisee locations, supported by private equity ownership committed to long-term brand development.
The brand’s franchise network is comprised of multi-unit operators with regional development rights, ensuring local expertise, operational continuity, and strong site selection. Freddy’s is actively expanding across the Southeastern United States, with a particular focus on suburban corridors in high-growth MSAs like Nashville.
Nashville MSA – Southeast Growth Engine with Diverse Economic Drivers
The Nashville MSA is home to over 2 million residents and ranks among the top U.S. metros for job growth, inbound migration, and overall economic performance. It is known for its thriving healthcare, education, tourism, music, and technology sectors. Major employers include Vanderbilt University Medical Center, HCA Healthcare, Nissan, Amazon, Bridgestone, and Oracle, all contributing to a diverse employment base and sustained population expansion.
Middle Tennessee continues to attract new residents from across the country due to its combination of low cost of living, vibrant urban lifestyle, access to outdoor amenities, and lack of a state income tax. The region is a national magnet for corporate relocations, young professionals, and retirees alike.
The property is located in a corridor benefiting from rapid suburban development, new home construction, and high-frequency retail demand. With a large commuting population and continued infrastructure investment, the area is poised for long-term growth, making it an ideal location for drive-thru-oriented QSR operators.
Absolute Triple-Net Lease – Fully Passive, Inflation-Resistant Income
The lease is structured as an absolute triple-net (NNN) agreement, requiring the tenant to be responsible for all operating expenses including taxes, insurance, maintenance, and capital repairs. This structure allows investors to enjoy fully passive cash flow with no day-to-day management responsibility.
The lease includes regular rental escalations that protect against inflation and enhance long-term return. With a seasoned franchise operator in place and ongoing investment into site-level enhancements, the property offers stable occupancy and dependable cash flow for years to come.
Whether for 1031 exchange reinvestment, long-term income planning, or portfolio diversification, this asset offers secure, credit-backed income in a highly attractive Southeastern growth market.
Strategic Retail Corridor with Strong Co-Tenancy and Demographic Support
The property is positioned in a high-traffic suburban retail corridor surrounded by national tenants, grocery-anchored centers, and major residential development. The immediate area includes well-known brands in banking, fuel, healthcare, and foodservice, contributing to multi-daypart traffic and long-term retail stability.
National co-tenants include grocers, pharmacy chains, auto parts stores, and other QSR brands. These synergies drive regular customer volume and help Freddy’s benefit from both impulse traffic and destination visits.
The surrounding submarket is characterized by strong household formation, above-average household income, and a growing population of young families and professionals. Public school districts, medical clinics, and regional employers are located nearby, further supporting the site’s draw and retail viability.
Freddy’s focus on comfort food, speed of service, and drive-thru convenience resonates particularly well with the surrounding consumer base. The location’s access, visibility, and drive-thru optimization reinforce the long-term viability of the business.
Tennessee – No State Income Tax and Strong Business Climate
Tennessee is widely regarded as one of the most attractive states for real estate investment due to its favorable tax structure, business-friendly policies, and consistent population growth. The state has no personal income tax, low corporate tax rates, and a well-established legal framework that favors landlords in lease enforcement and dispute resolution.
The Nashville region, in particular, has seen significant capital inflows from institutional investors, private equity groups, and REITs targeting retail and service-based net lease assets. As development continues and urban migration extends into the suburbs, tenant demand for high-visibility retail pads has remained strong, with limited new supply in certain trade areas.
Essential-use retail assets with long-term leases in Tennessee markets continue to see cap rate compression, especially in top-tier submarkets with drive-thru infrastructure and proven operator performance. This Freddy’s site benefits from these macro trends, offering secure income in a low-tax, high-growth environment.
Demographics and Trade Area Dynamics
Freddy’s draws from a broad demographic base including young professionals, working parents, students, and retirees. Its brand identity, menu consistency, and drive-thru-first model make it an ideal fit for Nashville’s suburban neighborhoods, which value convenience, quality, and customer experience.
Investment Highlights
Conclusion
This Freddy’s Frozen Custard & Steakburgers property within the Nashville MSA offers an exceptional opportunity to acquire a long-term net lease asset in one of the nation’s most desirable growth markets. The combination of a passive lease structure, national brand strength, and prime suburban location positions this asset as a secure and income-producing addition to any real estate portfolio.
As demand for quick-service dining and drive-thru convenience continues to rise, and as Nashville’s economic and population growth expands deeper into suburban trade areas, single-tenant QSR properties like this will remain in high demand. Backed by a proven operator, strategic location, and long-term lease, this offering meets the needs of investors seeking dependable returns and lasting asset value in the Southeast.