Hardee’s

Purchase Price$2,025,000
Annual Rental Income$138,713
Cap Rate6.85%
Lease Term20 Years
CityOwensboro MSA
Tenant: Hardee’s
Sector: Fast Food / QSR
State: Kentucky

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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

  • Lease Structure: Absolute triple-net (NNN)
  • Landlord Responsibilities: None
  • Initial Lease Term: 15 to 20 years
  • Renewal Options: Multiple 5-year extensions
  • Rent Increases: Fixed escalations every 5 years (typically 8–10%)
  • Income Type: Predictable, passive, and long-term

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:

  • Healthcare: Owensboro Health Regional Hospital is a top regional employer, drawing patients from surrounding counties and supporting a large professional and support staff population
  • Manufacturing: Major employers in metal fabrication, automotive components, and industrial materials fuel steady employment
  • Education: Local colleges and K–12 institutions contribute to a stable student and faculty base
  • Distribution: Access to interstate systems and barge traffic along the river enhances Owensboro’s role as a logistics and service center
  • Retail & Services: Owensboro draws shoppers from a wide rural trade area, supporting high daytime traffic in key commercial corridors

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:

  • Modern prototype layout with dine-in seating and a high-efficiency dual-lane drive-thru
  • Full pylon and building signage positioned for maximum daily vehicle exposure
  • Concrete lot with defined parking, landscaping, and ADA access
  • Signalized intersection or corner positioning for easy ingress and egress
  • Surrounded by national retailers and community institutions including grocery stores, schools, banks, and healthcare clinics

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:

  • Population exceeds 60,000 residents, supported by city-center density and suburban housing
  • Strong employment base from manufacturing, education, and healthcare
  • Above-average QSR visitation relative to national benchmarks for secondary markets
  • Growing housing development with regional in-migration from higher-cost urban areas
  • Commuter and daytime population supported by institutional employers and retail centers

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

  • Tenant: Hardee’s – National QSR brand with strong market penetration
  • Lease: Absolute NNN – zero landlord responsibilities
  • Lease Term: 15–20 years with renewal options
  • Rent Escalations: Every 5 years – enhances long-term yield
  • Site: Freestanding drive-thru in prime Owensboro retail corridor
  • Demographics: Steady population, strong daytime demand, limited QSR saturation
  • Surrounding Co-Tenancy: Includes national retailers and essential services
  • Low-Cost Market: Business-friendly state, low competition for long-term NNN assets
  • Ideal Use: 1031 exchange, passive portfolio addition, long-term estate planning

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.

Property details provided on this site are for general informational and illustrative purposes only. Specific availability and property status may change without notice. Please contact us to confirm current opportunities.