Hardee’s

Hardee’s – Absolute NNN Investment Opportunity
Kingsport–Bristol–Johnson City MSA | Tri-Cities Regional Market | Passive Income | Freestanding Drive-Thru QSR

This offering presents an excellent opportunity to acquire a single-tenant Hardee’s quick-service restaurant property located in the Kingsport–Bristol–Johnson City metropolitan statistical area (Tri-Cities region). The property is leased on a long-term absolute triple-net (NNN) basis, offering truly passive income with no landlord responsibilities, fixed rent escalations every five years, and reliable cash flow backed by one of the Southeast’s most well-established fast-food chains. Strategically positioned in a regional commercial corridor surrounded by stable residential neighborhoods, schools, retail anchors, and healthcare employers, this investment offers stable long-term income with minimal management.

This freestanding, drive-thru-focused asset is built for modern consumer preferences and is supported by a growing Sun Belt economy known for low taxes, infrastructure investments, and consistent population retention. It is well-suited for 1031 exchange buyers, REITs, family offices, and long-term investors looking to place capital in a low-risk, yield-focused, and recession-resilient net lease vehicle.

Tenant Overview – Hardee’s

Hardee’s is a cornerstone in the American fast-food industry, particularly across the Southeastern U.S. and Midwest. Owned by CKE Restaurants Holdings, Hardee’s operates thousands of locations nationally and is known for its breakfast program, scratch-made biscuits, and charbroiled burgers. The brand benefits from a loyal customer base, strong franchise infrastructure, and continued investment in digital and delivery ordering, keeping pace with shifting QSR trends.

At this location, Hardee’s operates under an absolute NNN lease. The tenant is responsible for 100% of operating and capital expenses including taxes, insurance, repairs, roof and structure maintenance, landscaping, and parking lot upkeep. The lease includes scheduled rent increases every five years and multiple renewal options, creating a stable income stream for years to come with complete insulation from ownership liability.

Lease Summary

• Structure: Absolute triple-net (NNN) – no landlord expenses
• Term: 15 to 20 years initial term
• Renewals: Multiple 5-year extension options
• Rent Escalations: Every 5 years (typically 8–10%)
• Management: Fully passive, zero responsibility
• Investor Type: Ideal for 1031 exchange, passive income investors, institutions, and private portfolios

This lease structure creates a long-duration cash-flow vehicle without operational risk, capital expense exposure, or management burden—perfect for investors prioritizing ease and predictability.

Tri-Cities Market Overview – Kingsport–Bristol–Johnson City MSA

The Tri-Cities MSA is one of the major economic centers of northeast Tennessee and southwest Virginia. This region is anchored by the cities of Kingsport, Bristol, and Johnson City, which together make up a cohesive and self-sustaining regional economy.

The area is home to a diverse range of employment sectors, including:

• Healthcare: Large regional hospitals, outpatient centers, and specialty care networks.
• Education: Multiple public universities and technical colleges serve the student and faculty population.
• Manufacturing: Home to international corporations, advanced materials plants, and logistics hubs.
• Retail & Distribution: A concentration of retail corridors and distribution centers supports regional shopping activity.
• Tourism: NASCAR events, state parks, and outdoor recreation bring consistent seasonal visitation.

These sectors ensure a steady customer base for value-focused QSR tenants like Hardee’s. With a pro-business tax environment and moderate cost of living, the Tri-Cities area remains an attractive place to live and work—supporting long-term retail viability and tenant success.

Location Highlights – Freestanding Drive-Thru Site

The subject property is a freestanding Hardee’s with dedicated ingress/egress along a signalized intersection or a major retail corridor. The site benefits from strong visibility and close proximity to other national brands that drive high daytime and weekend traffic volumes.

Property highlights include:

• Drive-Thru Configuration: High-efficiency dual-lane drive-thru designed for speed and convenience
• Dedicated Parking: Surface lot with ample stalls and clear ingress/egress
• Building Signage: Visible monument and building signage to capture commuter and pass-by traffic
• Proximity to Key Demand Drivers: Close to schools, healthcare centers, residential developments, and retail anchors
• Strong Daily Traffic: Corridor supports daily traffic exceeding 20,000 vehicles in many locations across the MSA

The surrounding area features major national brands, including grocery anchors, pharmacies, fuel stations, automotive service providers, and other quick-service chains—fostering co-tenancy and creating a destination retail node.

Demographic & Economic Strength

The Tri-Cities area supports a stable and resilient population base across all three core markets. Key demographic advantages include:

• Five-mile population exceeding 70,000 in most areas across the metro
• Steady median household income with blue- and white-collar employment mix
• Growing demand for convenient, affordable dining options
• Low housing costs that support steady in-migration and retirement-age relocation
• Diverse employment sectors including healthcare, education, and logistics

The combination of commuter activity, resident density, tourism draw, and school-related traffic creates consistent QSR demand across breakfast, lunch, and dinner hours.

Rent Escalation & Income Growth

The lease includes fixed rent increases every five years, creating a predictable and inflation-hedged income stream. These escalations boost net operating income (NOI) on a compounding basis and protect long-term yield. Additionally, with the tenant responsible for all maintenance and repairs, ownership cash flow remains uninterrupted.

Investment Highlights

• National QSR tenant with long-standing operational history
• Absolute NNN lease – zero landlord responsibilities
• Rent increases every five years support income growth
• Freestanding, high-visibility drive-thru with efficient layout
• Located in a growing regional metro with diversified demand drivers
• Surrounded by national retailers and employment generators
• Ideal for 1031 exchanges, long-term income strategies, and portfolio diversification
• Long lease term and passive income attract private and institutional capital
• Positioned in a tax-friendly and economically stable Sun Belt market

Conclusion

This Hardee’s property in the Kingsport–Bristol–Johnson City MSA provides the perfect blend of location, lease security, passive income, and tenant performance. Its absolute triple-net lease structure, long-term commitment, drive-thru configuration, and favorable regional economics make it a low-risk, high-certainty investment vehicle with solid growth upside.

Opportunities to acquire net-leased QSR assets with national branding, full pass-through leases, and regional strength in a stable metro like the Tri-Cities area are limited. Investors seeking passive, inflation-hedged cash flow in a reliable tenant-backed vehicle should strongly consider this property.

To request full financials, lease summary, and underwriting materials, reach out directly.