| Purchase Price | $2,975,000 |
|---|---|
| Annual Rental Income | $150,163 |
| Cap Rate | 5.05% |
| Lease Term | 20 Years |
| City | Phoenix MSA |
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Taco Bell – Absolute NNN Investment
Phoenix MSA | High-Density Submarket | Corporate-Backed Lease | Tax-Advantaged State
This is a rare opportunity to acquire a single-tenant Taco Bell property located in the Phoenix Metropolitan Statistical Area (MSA)—one of the fastest-growing and most economically resilient markets in the United States. Backed by a corporate-guaranteed, absolute triple net (NNN) lease, this investment offers truly passive income in a pro-business, income tax-free state. The property is ideally positioned in a high-traffic, high-growth corridor with strong demographics, excellent accessibility, and significant long-term appreciation potential.
Tenant Overview – Taco Bell | Net Lease Investment-Grade QSR
Taco Bell, a division of Yum! Brands, Inc., is one of the most dominant fast-food chains in North America, with a network of over 8,000 locations and a powerful national footprint. Consistently ranked among the top-performing QSRs in terms of brand value, sales volume, and consumer loyalty, Taco Bell has demonstrated remarkable resilience across economic cycles and market conditions.
This property is leased on a long-term absolute triple net (NNN) basis, typically featuring a 20-year initial term with multiple 5-year renewal options. Investors benefit from zero landlord responsibilities, and the lease structure includes built-in rent escalations every five years, enhancing long-term yield and offering a reliable hedge against inflation.
Taco Bell’s business model, which focuses on affordability, speed, and adaptability, thrives in both suburban and urban environments—making it a top-tier tenant in the net lease space. The company’s embrace of digital ordering, delivery partnerships, and drive-thru innovation further solidifies its position as a future-ready operator in the fast-casual category.
Location Overview – Phoenix MSA | Southwest Growth Powerhouse
The property is strategically located in the Phoenix MSA, the fifth-largest metro area in the U.S., with over 5 million residents and one of the nation’s highest in-migration rates. Phoenix is a major destination for corporate relocations, real estate investment, and infrastructure development, thanks to its business-friendly climate, diverse economy, and low cost of living relative to other tier-one markets.
The greater Phoenix area continues to benefit from major expansions in sectors such as advanced manufacturing, healthcare, logistics, aerospace, and semiconductors. Employers like Intel, TSMC, Amazon, Honeywell, and Banner Health anchor the region, bringing new jobs and supporting long-term housing and retail demand.
The property itself is located on a high-traffic arterial road in a dense, rapidly growing submarket. Average daily traffic counts exceed 30,000 vehicles, and the site benefits from excellent visibility, direct access, and a strong mix of national co-tenants nearby. Within a 3- to 5-mile radius, population density exceeds 100,000 residents, and average household income ranges between $75,000 and $120,000, depending on the submarket. New single-family and multifamily housing continues to surge, further increasing daytime traffic and drive-thru demand.
Arizona’s favorable tax policies—including no personal income tax on most retirement income and pro-business incentives—attract both residents and companies. These fundamentals enhance long-term real estate performance and make Phoenix one of the most attractive NNN markets in the country.
Why Invest in Taco Bell NNN in the Phoenix Market
Corporate-Backed Lease with Zero Landlord Responsibilities
This offering features a long-term, corporate-backed absolute NNN lease—a highly sought-after structure that eliminates management burden. Tenants pay for all taxes, insurance, maintenance, and repairs, allowing for 100% passive income generation.
Income Growth Through Scheduled Rent Increases
The lease includes regular rental escalations, typically 10% every five years or 1-2% annually, depending on the specific lease. These increases offer inflation protection and ensure cash flow improves over time—an essential feature in today’s interest rate environment.
Booming Demographics in a Pro-Growth Market
Phoenix continues to lead the country in net migration and housing starts. Submarkets such as Chandler, Gilbert, Glendale, Mesa, Goodyear, and Surprise are among the fastest-growing in the nation. These areas offer a highly favorable demographic mix for QSR operators, including families, young professionals, and retirees with disposable income.
QSR Sector Outperformance
Quick-service restaurants like Taco Bell remain recession-resilient and continue to perform well even in volatile markets. Taco Bell’s affordability and brand recognition make it a reliable tenant across multiple income levels and geographic regions.
Highly Visible, High-Traffic Location
The site is located along a major corridor with strong vehicle counts and nearby retail synergy. It benefits from co-tenancy with brands like Walmart, Starbucks, Circle K, Walgreens, and Dutch Bros, which drive repeat visits and help support consistent QSR traffic throughout the day.
Tax-Advantaged State
Arizona offers a favorable tax environment for investors, especially those seeking income-generating real estate. With no state tax on most Social Security income and retirement accounts, Arizona remains a preferred destination for high-net-worth investors and 1031 exchange buyers seeking wealth preservation and asset growth.
Key Investment Highlights
Conclusion
This Taco Bell NNN opportunity offers the complete package: national tenant strength, long-term lease security, inflation-protected income, and a location within one of the most dynamic MSAs in the country. Phoenix’s robust fundamentals—population growth, diversified economy, low taxes, and infrastructure investment—make this region a cornerstone for net lease investors seeking long-term value.
Whether you are completing a 1031 exchange, expanding your passive income portfolio, or simply seeking a high-credit QSR asset in a top-tier Sunbelt market, this Taco Bell property in the Phoenix MSA delivers exceptional stability and return potential.
Contact us today for the full offering memorandum, lease details, or to schedule a site visit. NNN assets of this quality and location are in high demand and limited supply. Secure a recession-resistant, tax-efficient asset in one of the strongest investment markets in the country.