Wendy’s

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

This offering provides a rare opportunity to acquire a single-tenant Wendy’s property in the Charleston Metropolitan Statistical Area (MSA), operating under a long-term absolute triple net (NNN) lease. Positioned in a high-traffic suburban retail corridor, this asset delivers zero landlord responsibilities, scheduled rent escalations, and truly passive, reliable income—backed by a nationally recognized quick-service restaurant (QSR) brand. With Charleston’s sustained population growth, economic diversification, and expanding real estate footprints, this Wendy’s investment offers exemplary performance fundamentals, making it highly desirable for income-focused investors, 1031 exchange participants, and institutional capital alike.

Tenant Overview – Wendy’s | National QSR Leader

Wendy’s is the third-largest burger chain in the United States, operating more than 6,800 locations across North America, Latin America, Asia, and Europe. The brand is renowned for its signature square patties, fresh-cut fries, and premium-quality offerings at value pricing, appealing to a broad consumer base. Wendy’s continuous product innovation, reputation for quality food, and delivery integration through drive-thru, mobile, and third-party platforms have helped sustain unit-level sales even in price-sensitive secondary markets.

At this location, Wendy’s remains committed under an absolute NNN lease, wherein the tenant assumes responsibility for all operating costs, including real estate taxes, insurance, structural and mechanical maintenance, landscaping, parking lot upkeep, and roof replacement. The lease includes scheduled rent escalations—typically every five years—delivering compound income growth and shielding net operating income from inflationary pressures. Long-term triple net QSR leases are widely regarded as premium fixed-income real estate assets, and Wendy’s continues to be a top-tier tenant in this space due to its brand stability and operational efficiency.

Lease Structure & Income Profile

• Lease Type: Absolute NNN—tenant responsible for 100% of property operating costs
• Lease Term: 15–20-year base lease
• Renewal Options: Typically two to four 5-year extensions
• Rent Escalations: Fixed increases every five years (typically 6%–10%)
• Investor Benefits: Passive, mailbox-style income; no management or oversight; inflation-hedged returns
• Expense Exposure: None—tenant covers taxes, insurance, roof, structure, HVAC, and all maintenance

This lease structure guarantees predictable cash flow and long-term resiliency. For investors seeking a stable, low-risk, high-warranted return asset, this offering delivers.

Market Overview – Charleston MSA | Southeast Coastal Growth Engine

The Charleston MSA, encompassing Charleston, Dorchester, and Berkeley Counties, is one of the fastest-growing metro areas in the Southeast. With a metro population exceeding 850,000, the region continues to attract substantial inbound migration—particularly from northern and midwestern states—due to its coastal appeal, pro-business regulation, affordable cost of living, and high quality-of-life assets. Over the past decade, Charleston has grown by more than 20%, with infrastructural investment expanding across commercial, healthcare, tourism, logistics, manufacturing, and advanced technology sectors.

Charleston’s diversified economic base includes:

• Port of Charleston, one of the highest-volume container ports in the United States
• Major employers: Boeing (aerospace), Volvo (automotive manufacturing), Mercedes-Benz Vans, Medical University of South Carolina, Roper St. Francis Healthcare
• A rapidly growing tourism industry anchored by a historic downtown, beaches, and cultural assets
• Emerging tech startups supported by local universities and co-working ecosystems
• A rising logistics and distribution corridor enabled by port expansions and inland freight facilities

With no personal income tax in South Carolina, tax burden for businesses and individuals is low, making the region attractive for growth-focused capital.

Site Analysis – Prime Drive‑Thru Corridor Location

This Wendy’s is strategically located along a primary commercial artery in one of Charleston’s high-growth suburban submarkets. The roadway sees daily traffic counts between 25,000 and 40,000 vehicles, delivering consistent drive‑thru exposure and high visibility.

The drive-thru layout includes dual-lane access, ample stacking, and easy ingress/egress from multiple directions—optimized to minimize wait times and enhance throughput. The intensity of visibility is bolstered by a modern freestanding building with prominent signage viewable from both directions of travel.

The surrounding area is heavily anchored by national retailers and service providers, including supermarkets, home improvement chains, auto service centers, financial institutions, convenience stores, and fast-casual/takeout restaurants. Co-tenancy synergy reinforces repeat customer traffic while increasing comparative underlying sales volume. Nearby residential enclaves include a mix of historic subdivisions, mid-density developments, and new build communities attracting families, professionals, and empty-nesters—leading to steady foot traffic from dawn to dusk.

Trade-Area Demographics & Growth Fundamentals

Within a 3–5-mile trade area, the following applies:

• Population: Over 120,000 residents
• Household Income: Median $80,000–$110,000 with several subzones exceeding $120,000
• Age Profile: Mix of families, millennials, Gen Z professionals, retirees, and active seniors
• Daytime Population: Reinforced by employment centers in healthcare, manufacturing, education, and logistics

Population growth in Charleston consistently outpaces national and state averages. New housing permits and master-planned residential projects are proliferating in Bowman, Summerville, Goose Creek, James Island, and West Ashley—the high‑desirability submarkets where this Wendy’s asset is located. As one of the few freestanding QSR options in a developing suburban node, this Wendy’s benefits from early-mover advantage and strong visibility before retail saturation.

Income Growth & Inflation Protection

With fixed rent escalations incorporated into the lease every five years, projected future income increases between 6–10% are contractually guaranteed—providing protection against inflationary pressures and rising replacement cost structures. This prebuilt escalator structure effectively boosts yield over the lease term without requiring capital or re-underwriting.

The absolute NNN format also ensures income visibility and integrity, as the tenant covers all expenses—eliminating risk of underfunded reserves, surprise capital expenditures, or escalated operating costs. This simplifies investor due diligence and creates a cleaner path for future sale or refinance.

Why Wendy’s in Charleston MSA?

1. Rapidly Growing Market: Among top five fastest-growing metros in the Southeast with strong GDP, housing, and employment trends.
2. Diversified Economic Base: Advanced manufacturing, aerospace, port logistics, tourism, higher education, and healthcare foster stable daytime traffic.
3. Tax-Efficient State: No personal income tax, favorable sales and property tax environment, and pro-investment climate.
4. Suburban QSR Resilience: The drive-thru format continues to perform well post-pandemic as suburban patterns shift toward convenience and speed.
5. Co-Tenancy & Synergy: Site connectivity to national retailers and essential services encourages consistent diner volume.
6. Lease Architecture: Absolute NNN structure with escalations provides inflation-adjusted cash flows and landlord simplicity.
7. Market Rarity: Freestanding off-site QSR locations are rapidly absorbed in suburban Charleston, making newly net-leased assets increasingly scarce.
8. Institutional Quality: Tenant credit strength, low lease responsibilities, and lease term length position this asset as a portfolio-grade holding.
9. Ideal Fit for Investors: Great for 1031 exchanges, recurring income mandates, wealth preservation, and low-volatility allocation.
10. Exit Friendly: Long-term lease and consistent cash flow support future marketability and refinance options.

Key Investment Highlights

• Single-tenant Wendy’s under absolute NNN lease
• Fully passive ownership—zero landlord duties
• 15–20-year lease with multiple renewal options
• Rent escalations every five years provide inflation-hedged income growth
• Prime drive-thru site with dual lanes and signage on a 25,000–40,000 VPD suburban corridor
• Dense and affluent trade area (120,000+ population; high-income households)
• Strong co-tenancy with big-box retail, grocery, pharmacies, and financial institutions
• Located in high-demand submarket experiencing residential and retail boom
• QSR brand resiliency with digital and delivery channels complementing drive-thru
• Investment-grade asset suitable for private equity, REITs, family offices, and 1031 exchange buyers

Conclusion

This Wendy’s net lease investment in the Charleston MSA checks every box for top-tier income real estate: national brand stability, long-term lease structure, landlord-free ownership, inflation-protected cash flow, and conspicuous location in one of the Southeast’s fastest-growing metros. The drive-thru format enhances consumer convenience while supporting unit-level productivity and potential yield upgrade.

Equipped with scheduled rent escalations, no operational burden, and anchored by strong demographic and economic fundamentals, this asset is a rare and valuable addition to any income-producing portfolio. With escalating interest in suburban QSR assets and increased demand for stable, passive income strategies, this Wendy’s offering is poised to attract both private capital and institutional interest.

For full offering materials—including lease abstract, investment summary, demographic maps, and property tour arrangements—please contact us directly. High-quality net lease QSR assets like this Wendy’s in Charleston’s emerging affluent corridors are limited and highly sought-after.