Wendy’s

Wendy’s – Absolute NNN Investment
Nashville MSA | High-Growth Tennessee Market | Passive Income | Prime Drive-Thru QSR Asset

This offering presents a rare opportunity to acquire a single-tenant Wendy’s property in the Nashville Metropolitan Statistical Area (MSA), operating under a long-term absolute triple-net (NNN) lease. Located on a high-traffic suburban corridor within one of the fastest-growing markets in the country, this asset delivers zero landlord responsibilities, scheduled rent escalations, and predictable passive income—all backed by a nationally trusted quick-service restaurant (QSR) brand.

With Nashville consistently ranking among the top U.S. metros for job and population growth, this Wendy’s property offers the stability, scalability, and investment quality that income-focused investors, 1031 exchange buyers, and institutions demand.

Tenant Overview – Wendy’s | National QSR Stable

Wendy’s ranks as the third-largest burger chain in the U.S., with over 6,800 locations worldwide. Known for its signature square patties, fresh-cut fries, and innovative menu, the brand attracts value-conscious consumers who prioritize convenience and quality. Wendy’s drive-thru format and digital ordering capabilities have made it particularly resilient across all market conditions, including suburban corridors like those surrounding Nashville.

The tenant operates under an absolute NNN lease, meaning it assumes responsibility for all property-related expenses—including taxes, insurance, and maintenance. The lease also includes scheduled rent escalations—typically every five years—providing built-in income growth and an effective hedge against inflation.

Lease Structure & Cash Flow Profile

• Lease Type: Absolute NNN—tenant covers all operating expenses
• Term: 15–20-year initial lease term
• Renewals: Typically multiple 5-year options
• Escalations: Fixed increases every five years (commonly 6%–10%)
• Investor Benefits: Passive, mailbox-style income with inflation protection and no management duties

This lease structure ensures cost predictability and income longevity—ideal for those building portfolios of passive, revenue-generating assets in robust growth markets.

Market Overview – Nashville MSA | Southeast Powerhouse

The Nashville MSA is home to over 2 million residents, with growth averaging 2.6% annually. With a median household income of $82,499 and per capita income around $46,820, Nashville supports strong consumer demand. The metro has seen over 136,000 new residents between 2020 and 2024, with a significant portion driven by inbound domestic and international migration.

Long-term economic drivers include healthcare, education, logistics, tech, and entertainment, supported by major employers such as Vanderbilt University Medical Center, HCA Healthcare, Amazon, Nissan, and Bridgestone. Tennessee’s lack of state income tax, combined with Nashville’s strong quality of life, continues to attract both residents and businesses.

Site Analysis – Prime Drive-Thru Location

This Wendy’s is strategically sited along a primary suburban arterial with an average daily traffic (ADT) count exceeding 30,000 vehicles, delivering continuous drive-thru exposure. The layout includes dual-lane ingress/egress and prominent signage, optimized for maximum visibility.

The property is located among national co-tenants—grocers, big-box retailers, banks, and other QSRs—creating strong retail synergy. Adjacent rooftops, schools, office parks, and medical facilities fuel consistent daytime and evening sales.

Today’s QSR model thrives on speed, convenience, and drive-thru efficiency. This site meets all criteria: robust visibility, accessibility, and access to high-income consumer segments.

Trade-Area Demographics

A 5-mile radius supports:

• Population: Over 120,000 residents
• Median Household Income: $82,499 metro average; many submarkets exceed $90,000–$110,000
• Age Demographics: Balanced mix of families, millennials, Gen Z professionals, and retirees

As affordability in Nashville’s urban core tightens, suburban expansion continues—pushing more population into corridors like this one and increasing QSR demand.

Income Growth & Inflation Protection

With built-in rent escalations every five years—typically in the 6% to 10% range—this investment offers reliable income growth. These increases help maintain purchasing power in inflationary environments and protect the asset’s long-term yield profile.

The absolute NNN structure ensures the tenant handles all expenses—taxes, insurance, roof, structure, HVAC—resulting in a clean, expense-free investment for the landlord.

Why Wendy’s in the Nashville MSA?

• Rapid growth and diversified economy: Strong in-migration, stable employment, and high-income consumers
• Expanding suburbs: Submarkets like Franklin, Murfreesboro, Gallatin, Mt. Juliet, and Hendersonville are experiencing residential and retail growth
• Drive-thru performance: Wendy’s excels in suburban drive-thru settings, with high customer turnover and minimal overhead
• National tenant: Strong franchisee/operator backing and global brand recognition
• Inflation-resistant lease: Scheduled escalations ensure increasing NOI and long-term performance
• Landlord simplicity: Absolute NNN lease with no maintenance, repair, or oversight requirements
• Investment quality: Ideal for private investors, family offices, and REITs seeking long-term stability

Key Investment Highlights

• Single-tenant Wendy’s on a long-term absolute triple net lease
• 100% passive ownership—no landlord responsibilities
• Strong rent escalations structured every five years
• Located in Nashville MSA—one of the nation’s top-performing real estate markets
• Drive-thru QSR model with operational resilience
• High-traffic suburban corridor—30,000+ vehicles per day
• Strong retail synergy with national co-tenants and surrounding residential growth
• Attractive demographic profile with upper-middle income consumers
• Suitable for 1031 exchange, institutional capital, and portfolio diversification
• Tennessee tax advantages—no state income tax and pro-business climate

Conclusion

This Wendy’s absolute NNN investment in the Nashville MSA presents a best-in-class opportunity for passive income, long-term growth, and tenant stability in one of the most desirable markets in the Southeastern U.S. With zero landlord responsibility, strong built-in rent increases, and a strategic drive-thru location surrounded by national retailers and growing rooftops, this property is the type of real estate asset highly favored by today’s most sophisticated investors.

Whether you’re executing a 1031 exchange, targeting long-term cash flow, or seeking inflation-protected returns with minimal involvement, this Wendy’s delivers on every front. Assets like this are rarely available in Nashville’s high-demand corridors and are typically absorbed quickly by private and institutional capital.

For full offering details, lease abstract, and demographic mapping, contact us directly. Prime QSR investments in top-tier MSA markets like Nashville remain limited and are consistently in high demand.