Purchase Price | $2,210,000 |
---|---|
Annual Rental Income | $143,650 |
Cap Rate | 6.50% |
Lease Term | 15 Years |
City | Dyersburg MSA |
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Pizza Hut – Single‑Tenant Net Lease Investment
Dyersburg MSA, TN | Fast‑Casual Drive‑Thru & Delivery | Absolute NNN Lease | Passive Income Opportunity
Overview
This opportunity highlights a freestanding Pizza Hut in the Dyersburg metropolitan area of Tennessee. The investment is secured by a long-term absolute triple-net (NNN) lease that places all site-level expenses—such as property taxes, insurance, maintenance, utilities, landscaping, and structural upkeep—entirely on the tenant. With scheduled rent escalations at regular intervals, the asset offers steady, inflation-protected income without landlord involvement. Zero landlord duties ensure a truly passive ownership experience. This property is ideal for investors focused on net lease investment properties, single-tenant NNN retail, fast-casual restaurant strategies, or 1031-exchange-ready portfolios.
Investment Highlights
Tenant Overview
Pizza Hut is a globally recognized fast-casual and delivery brand well-known for its pizzas, wings, pasta, and family-style menu items. This location is managed by an experienced multi-unit franchisee who consistently reinvests in site upkeep, renovations, and local marketing initiatives. Though the lease is backed by the franchisee rather than the corporate entity, ongoing capital investment and operational excellence support robust tenancy performance.
Lease Summary
Investors benefit from predictable income, built-in rent growth, and minimal management demands.
Site Overview
Constructed to Pizza Hut’s prototype specifications, the property offers dual amenities: drive-thru capability and delivery-ready staging. The building features brand-consistent exterior finishes, clear signage, and dedicated parking. Located at a prominent signalized intersection in Dyersburg’s main retail district, the site offers excellent visibility and convenient access. Surrounding commercial anchors include national grocers, quick-service restaurants, pharmacies, and service businesses—all driving steady daypart traffic.
Market Overview – Dyersburg MSA
Dyersburg functions as a central economic node in northwest Tennessee, supported by healthcare, manufacturing, education, and retail sectors. Local retail corridors feature national anchors, convenience-first establishments, and service providers that generate consistent consumer traffic. Fast-casual brands with drive-thru and delivery capabilities perform particularly well in communities of this scale, offering convenience and value to residents and commuters alike.
Demographics and Trade Area
The trade area includes a mix of households, professionals, families, students, and service-sector employees. A stable residential population combined with commuter flow supports daypart traffic—ranging from breakfast snacks and lunch orders to family dinners and weekend meal deliveries. Local institutions like schools, healthcare facilities, and community organizations contribute to repeat visitation and predictable volume.
Consumer Demand Drivers
Income Profile and Value Creation
Scheduled rent escalations deliver logical income increases without landlord capital expenditure requirements. Under the absolute NNN lease, tenant-paid expenses result in clear net operating income and simplify underwriting. The franchisee’s continued commitment to property upkeep and customer experience further reinforces long-term tenant longevity and asset resilience.
Ideal Buyer Profile
Attractive to:
Market Positioning & Trends
Drive-thru and delivery-equipped fast-casual restaurants remain highly sought-after in the net lease market due to consumer convenience trends and repeat-use models. Pizza Hut’s brand consistency and operational model align well with emerging demand. Limited availability of standalone drive-thru pads in established corridors like Dyersburg supports scarcity value and enhances asset liquidity. This opportunity aligns closely with key investment searches like net lease investment properties, single-tenant NNN retail, fast-casual NNN lease investments, Pizza Hut NNN assets, and 1031 exchange opportunities.
Conclusion
This Pizza Hut in the Dyersburg MSA offers a compelling, low-maintenance investment solution. Featuring a long-term absolute NNN lease, franchisee-backed tenancy, structured rent escalations, and a high-visibility retail location in a stable market, it offers hands-off income generation and long-term value. With no landlord responsibilities and inflation-safeguarded returns, this asset is well-suited for investors building robust, passive-income portfolios based on quality single-tenant real estate.
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