| Purchase Price | $3,150,000 |
|---|---|
| Annual Rental Income | $184,275 |
| Cap Rate | 5.85% |
| Lease Term | 18 Years |
| City | Charleston MSA |
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Whataburger Net Lease Investment – Charleston MSA
Single-Tenant QSR Asset in a Premier Coastal Growth Market
This offering presents the opportunity to acquire a high-performing net lease asset occupied by Whataburger, one of the most established and fastest-growing regional quick-service restaurant (QSR) brands in the country. Located in the Charleston, South Carolina metropolitan statistical area (MSA), the property is backed by a long-term absolute triple-net lease with zero landlord responsibilities. The tenant, a trusted operator within Whataburger’s Southeast expansion plan, occupies a prime retail location in one of the most dynamic and economically diverse coastal markets in the region.
Charleston continues to experience robust population and job growth, driven by its port infrastructure, tourism economy, and appeal as a high-quality-of-life destination. As the region grows outward from its historic urban core, national QSR brands like Whataburger are aggressively targeting high-visibility suburban corridors supported by dense residential development and a strong consumer base.
Tenant Overview – Whataburger
Founded in 1950, Whataburger has grown into a beloved brand throughout the South and Southwest, now operating nearly 1,000 units across 14 states. Known for its made-to-order burgers, all-day breakfast, and efficient drive-thru service, Whataburger combines regional loyalty with modern QSR operations. The brand has proven its ability to compete nationally by maintaining strong unit-level economics, offering a compelling dining value proposition, and executing efficient service across multiple dayparts.
In recent years, Whataburger has accelerated its expansion across the Southeast, targeting South Carolina, Georgia, North Carolina, and Tennessee. Its entrance into the Charleston market is backed by strong consumer demand, smart real estate positioning, and a franchise system supported by institutional capital through BDT Capital Partners. Each location is optimized for high throughput with dual-lane drive-thrus, digital ordering infrastructure, and interior dining designed to accommodate high traffic and return visits.
As a tenant, Whataburger represents long-term strength. Their strategic site selection process, high brand loyalty, and proven operator performance translate into secure, stable income for investors who prioritize credit quality and operational longevity.
Charleston MSA – Coastal Growth Engine with Economic Diversity
The Charleston MSA is one of the most sought-after markets in the Southeast, consistently ranking as one of the fastest-growing areas in the country in terms of both population and employment. The region’s growth is fueled by a diverse economy encompassing shipping, tourism, manufacturing, aerospace, defense, and technology. The Port of Charleston is the second-busiest container port on the East Coast and plays a critical role in South Carolina’s economic strength.
Charleston is home to major employers including Boeing, Mercedes-Benz Vans, MUSC Health, Bosch, and Joint Base Charleston. These employers provide a stable workforce and consistent consumer spending across multiple income tiers. Additionally, the city attracts over 7 million tourists annually, contributing to year-round economic activity across retail, hospitality, and foodservice sectors.
Within a five-mile radius of the property, the population exceeds 125,000 residents, with average household incomes over $90,000. This market features a mix of young professionals, families, military personnel, and retirees, creating a dynamic and diverse consumer base that supports national foodservice brands like Whataburger.
The property’s suburban location benefits from new housing developments, excellent highway access, and growing infrastructure investment. As Charleston’s population continues to expand outward, high-visibility corridors like this one are seeing rapid growth in both commercial demand and residential density.
Absolute NNN Lease – Passive Income Structure
The property is leased to Whataburger on an absolute triple-net basis, with the tenant responsible for all property taxes, insurance, maintenance, and capital expenditures. The lease structure offers investors true passivity and a dependable monthly income stream, making it ideal for 1031 exchange buyers, high-net-worth individuals, and long-term hold strategies.
Structured rent increases are built into the term, enhancing yield over time and providing an inflation-resistant income profile. With no landlord management or capital exposure, this lease allows for fully hands-off ownership, which is increasingly preferred among both individual and institutional net lease buyers.
Whataburger’s long-term lease commitment and strong site selection process signal high occupancy certainty and minimal rollover risk. The lease is structured to align with the company’s long-range expansion goals in the Carolinas and reinforces the brand’s confidence in this market.
Prime Location in an Expanding Retail Corridor
The Whataburger site is positioned on a major commercial thoroughfare with traffic counts exceeding 30,000 vehicles per day. The property offers excellent access and full visibility from both directions, benefiting from signalized access and prominent monument signage. The immediate corridor is home to a mix of national tenants and local operators, supporting strong daytime and evening traffic.
Surrounding retailers include Walmart Supercenter, Publix, Chick-fil-A, Starbucks, Lowe’s, CVS, Planet Fitness, and national fuel brands. This tenant mix generates consistent cross-shopping traffic and builds momentum for outparcel QSR tenants like Whataburger. The presence of schools, hospitals, and civic centers in the surrounding area further drives daily traffic and repeat customer patterns.
Residential growth continues to expand in every direction from the site. Thousands of new housing units are in various stages of development nearby, and the area’s schools and public infrastructure are being actively expanded to support the growing population. The synergy of residential rooftops and commercial amenities creates the kind of high-frequency retail environment that Whataburger targets.
South Carolina’s Business Climate and Investment Appeal
South Carolina ranks as one of the most business-friendly states in the nation, consistently attracting corporate investment due to its low tax burden, right-to-work policies, and robust infrastructure. The state offers significant logistical advantages with its deepwater ports, major highways, and strong workforce development programs.
Charleston is a particularly attractive submarket, offering coastal access, a skilled labor pool, and a high quality of life that appeals to both employers and residents. Real estate investment activity in the region has surged in recent years, and demand for creditworthy, net-leased assets has remained strong despite broader market volatility.
Charleston’s favorable demographics, growing port activity, and expanding suburban footprint combine to create a market where tenant performance is consistent and site-level real estate value continues to appreciate.
Demographic and Trade Area Overview
The trade area surrounding the property supports multi-daypart QSR demand, with strong lunch, dinner, and late-night traffic. Whataburger’s location strategy focuses on areas with consistent vehicular volume, visible access, and a loyal consumer base—all of which are present in this site’s core demographic footprint.
Investment Highlights
Conclusion
This Whataburger property in the Charleston MSA presents a compelling opportunity for investors seeking a passive, income-producing asset in a growing Southeast coastal market. With a long-term absolute NNN lease in place and backed by a nationally recognized tenant with deep regional loyalty, the asset offers both cash flow stability and underlying real estate strength.
Charleston’s continued growth trajectory, strong demographic profile, and economic diversity make this a market well-positioned for long-term appreciation. The strategic location of the site, the performance history of the brand, and the hands-off lease structure combine to deliver a best-in-class net lease investment opportunity.