| Purchase Price | $2,820,000 |
|---|---|
| Annual Rental Income | $145,230 |
| Cap Rate | 5.15% |
| Lease Term | 19 Years |
| City | Nashville MSA |
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Taco Bell – Absolute NNN Investment
Nashville MSA | High-Traffic Corridor | Corporate-Backed Lease
This is an exceptional opportunity to acquire a fee-simple interest in a single-tenant Taco Bell triple net (NNN) lease property located in the heart of the Nashville, Tennessee MSA—a high-growth Sunbelt market with exceptional fundamentals. The asset is backed by a long-term, corporate-guaranteed absolute NNN lease, offering stable, passive income with zero landlord responsibilities. Featuring a nationally recognized tenant, a high-traffic retail corridor location, and favorable demographics, this Taco Bell investment is ideal for investors seeking predictable returns in an income tax-free state.
Tenant Overview – Taco Bell | Net Lease QSR Investment
Taco Bell, a subsidiary of Yum! Brands, Inc., is one of the top-performing quick-service restaurant (QSR) brands in the United States, with more than 8,000 locations nationwide and a growing international footprint. The company consistently ranks among the top fast-food chains in terms of sales, brand equity, and consumer loyalty. With decades of proven performance and a commitment to operational excellence, Taco Bell represents a gold standard tenant in the net lease investment category.
This offering features an absolute NNN lease—commonly structured with a 20-year base term and multiple 5-year renewal options. The lease includes scheduled rent escalations, typically 1-2% annually or 10% every five years, providing reliable income growth and a built-in hedge against inflation. All property-level expenses—including real estate taxes, insurance, and maintenance—are the sole responsibility of the tenant, creating a truly passive investmentfor the landlord.
For 1031 exchange buyers, high-net-worth investors, and family offices, Taco Bell NNN assets offer long-term security, corporate credit, and recession-resistant cash flow. Their drive-thru-centric design and affordability-focused menu keep Taco Bell locations relevant across economic cycles, and their adaptability to mobile ordering and delivery has further enhanced their long-term value.
Location Overview – Nashville MSA | Explosive Growth Market
Situated in the Nashville Metropolitan Statistical Area, this property benefits from one of the fastest-growing and most economically dynamic markets in the U.S. The Nashville MSA boasts a population exceeding 2.1 million residents, with consistent annual growth driven by migration, job creation, and urban expansion. With no state income tax, low business regulations, and a booming healthcare, tech, and music industry presence, Nashville continues to attract residents and corporations from across the country.
The property sits along a high-visibility, high-traffic retail corridor, surrounded by national retailers, service businesses, and residential density. Average daily vehicle counts on surrounding roads often exceed 25,000 cars per day, ensuring strong exposure and repeat traffic for the tenant. Within a 5-mile radius, population levels exceed 100,000 with average household incomes surpassing $90,000—creating an ideal customer base for fast-casual dining concepts like Taco Bell.
Submarkets such as Brentwood, Franklin, Mount Juliet, Hendersonville, and Murfreesboro continue to see significant development and demand for retail services, making Taco Bell locations in these areas especially attractive to net lease investors. The site’s proximity to new housing communities, employment centers, and major transportation arteries enhances long-term viability and residual value.
Why Invest in a Taco Bell Net Lease in Nashville
Strong Tenant Credit:
Taco Bell is a top-tier tenant backed by the financial strength of Yum! Brands, a publicly traded company with multi-billion-dollar revenue and global brand recognition. Their long-standing history of profitability, brand loyalty, and real estate ownership makes them a trusted operator in the NNN space.
Absolute NNN Lease – True Passive Income:
The lease structure is absolute triple net, meaning the tenant is responsible for 100% of property operating costs including taxes, insurance, and maintenance. This allows investors to enjoy hands-off, mailbox money with no landlord obligations—ideal for portfolio diversification or out-of-state ownership.
Inflation-Protected Lease Escalations:
Built-in rent increases provide consistent, predictable income growth over the lease term. In a rising interest rate or inflationary environment, these escalations protect purchasing power and ensure yield durability.
Tax-Friendly Environment:
Tennessee’s no state income tax policy enhances net returns for individual and institutional investors alike. Combined with favorable depreciation strategies available to real estate owners, the Nashville area offers a tax-efficient investment environment.
Prime Retail Location with Dense Demographics:
The property benefits from strong surrounding demographics, a mix of high-income neighborhoods, and regional population growth. Nearby rooftops, schools, and employment centers fuel daily demand and ensure long-term tenant performance.
Investment-Grade QSR Real Estate:
As consumer preferences shift toward fast, affordable food options, QSR real estate continues to outperform. Taco Bell’s adaptability and drive-thru model place it at the forefront of this resilient retail category. Its ability to operate efficiently with limited staff and leverage mobile ordering further supports long-term viability.
Key Investment Highlights
Conclusion
This Taco Bell net lease offering represents a best-in-class opportunity for investors seeking a high-quality, income-producing asset in a thriving Southeast market. The combination of an absolute NNN lease, corporate guarantee, rent escalations, and strategic location in the Nashville MSA creates a compelling investment profile with long-term income stability and strong residual value.
Whether you’re completing a 1031 exchange, building out a diversified NNN portfolio, or seeking dependable passive income from real estate, this Taco Bell property offers a rare blend of tenant strength, market fundamentals, and lease structure. In an environment where certainty, brand equity, and location are paramount, this opportunity stands out as a core net lease asset for any serious investor.