Purchase Price | $2,025,000 |
---|---|
Annual Rental Income | $138,713 |
Cap Rate | 6.85% |
Lease Term | 20 Years |
City | Owensboro MSA |
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Hardee’s – Absolute NNN Lease Offering
Owensboro, Kentucky MSA | Regional Trade Center | Freestanding Drive-Thru | Fully Passive Income
This offering presents an exceptional opportunity to acquire a freestanding Hardee’s property located in the heart of the Owensboro, Kentucky metropolitan area, under a long-term absolute triple-net (NNN) lease. With no landlord responsibilities, scheduled rent increases every five years, and a strong-performing national QSR tenant, this asset delivers fully passive income and inflation-resistant cash flow. The property is ideally positioned in a dominant retail corridor near regional employers, medical centers, and residential neighborhoods, making it a stable long-term investment in a supply-constrained market.
This Hardee’s site is well-aligned with current consumer trends favoring drive-thru access, breakfast-focused offerings, and value-based dining—all within a low-cost operating environment in a pro-business state. The investment checks every box for net lease buyers: national credit, long-term lease, rent growth, zero management, and a growing regional economy.
Tenant Overview – Hardee’s
Hardee’s, part of the CKE Restaurants Holdings portfolio, has a strong presence across the Southeastern and Midwestern United States. Known for its scratch-made biscuits, charbroiled burgers, and drive-thru breakfast menu, Hardee’s has maintained brand loyalty through evolving consumer tastes and QSR innovation. The brand continues to upgrade its store designs and menu formats, including investments in digital ordering and third-party delivery capabilities.
This location operates under an absolute NNN lease, where the tenant is solely responsible for all real estate-related costs, including property taxes, building insurance, roof and structure, maintenance, and parking lot upkeep. The lease includes scheduled rent increases every five years and multiple renewal options, making it a true long-term, inflation-hedged income vehicle.
Lease Terms
This structure provides 100% net operating income reliability, with no risk of surprise maintenance or operational costs.
Market Overview – Owensboro, KY MSA
Owensboro serves as the cultural and commercial hub for Western Kentucky and parts of Southern Indiana. As the third-largest city in Kentucky outside of the Louisville and Lexington areas, Owensboro boasts a diversified economy, steady population growth, and strong infrastructure. The city benefits from its position along the Ohio River and its proximity to major transportation corridors and regional markets.
Key economic drivers include:
This healthy economic mix supports local dining, particularly QSR tenants like Hardee’s that cater to the region’s demand for affordable and fast meals.
Property Location & Features
The subject Hardee’s occupies a freestanding pad site along one of Owensboro’s primary commercial thoroughfares, with excellent access and visibility. The surrounding area includes grocery anchors, pharmacy chains, banks, fuel stations, auto service providers, and other high-performing QSR brands, creating a powerful consumer draw.
Key site features include:
The location is optimized to serve commuters, families, students, and nearby employees during all dayparts, especially during breakfast and lunch hours.
Demographic Snapshot
Within a 5-mile radius of the property:
The market reflects strong regional traffic patterns and long-standing retail demand, supporting consistent store-level performance for value-driven QSR brands like Hardee’s.
Rent Growth & NOI Upside
Scheduled rent bumps every five years increase net operating income on a compounding basis, improving yield over time and protecting the investment from inflation. With no capital expenditures or operating cost exposure, this creates a simplified, high-certainty income stream.
Hardee’s store performance nationally continues to benefit from third-party delivery adoption, off-premise dining trends, and strategic breakfast menu positioning—creating positive tailwinds for rent sustainability and renewal likelihood.
Investment Summary
Conclusion
This Hardee’s in the Owensboro, Kentucky MSA represents an ideal acquisition for buyers seeking long-term, passive income in a stable and growing secondary market. The combination of a high-performing national tenant, absolute NNN lease structure, strategic location, and rent escalation schedule provides a rare blend of security and upside.
With no landlord obligations, a proven QSR brand, and strong site fundamentals, this asset offers a compelling risk-adjusted yield profile and long-term ownership potential in a supply-constrained environment. Investors looking for predictable cash flow, zero management, and growth in a thriving regional trade area will find this opportunity particularly attractive.
To request lease abstracts, financials, and full offering materials, please reach out directly.