For Sale
$3,646,000

2051 Highland AveJackson, TN 38305

Exceptional KFC, 20-Year NNN Lease

Overview

Added:
Dec 11, 2024
Days on market:
114
This exceptional investment opportunity presents a 3,729 square foot KFC restaurant located at 2051 N Highland Ave, Jackson, TN 38305. The property boasts a new 20-year absolute NNN lease, commencing September 30, 2024, and guaranteed by a 161-unit subsidiary of a major US franchisee group. The lease includes 1.5% annual rent increases beginning in year seven and four, five-year renewal options, extending the lease to 2044. The property's strong financial performance is highlighted by 2023 sales exceeding the national KFC average by 115%, a trend that has continued for the past three years. The current Net Operating Income (NOI) stands at $213,302, yielding a 5.85% cap rate at the asking price of $3,646,000. Situated on a 1.26-acre lot with 62 parking spaces, the property is an outparcel to the Old Hickory Mall, a 538,641 square foot shopping center anchored by JCPenney and Belk, attracting over 1.2 million annual visitors. The location benefits from excellent visibility and access from Highway 45 (Highland Ave), boasting over 53,500 vehicles per day. The property underwent a complete remodel in 2005 and 2023. This prime retail location is within close proximity to numerous amenities, including a planned large-scale event center, a Kroger-anchored shopping center, I-40, a major hospital, and several hotels. The Jackson market's strong economy, fueled by major employers and a significant student population, further enhances the investment potential of this property. The KFC brand's consistent ranking among top fast-food chains adds to the overall appeal and stability of this investment.

Highlights

  • New, 20-year NNN lease guaranteed by a 161-unit subsidiary of Tasty Restaurant Group, a top 10 US franchisee.
  • Exceptional KFC store performance; 2023 sales 115% above national average, with consistent year-over-year growth. Strong EBITDAR coverage and rent-to-sales ratio.
  • Completely remodeled in 2023. Outparcel to Old Hickory Mall (538,641 SF), anchored by JCPenney & Belk, with over 1.2 million annual visitors.
  • Excellent visibility and access from Highway 45 (53,500+ VPD). Located in an ideal retail corridor near a planned 140,000 SF event center, 280-room hotel, and additional retail/dining.
  • Proximity to a Kroger-anchored shopping center, I-40, Jackson-Madison County General Hospital (642 beds), and four hotels/inns.
  • 1.50% annual rent increases starting year 7, yielding a 6.34% average CAP rate at list price. Located near significant retail developments (Columns Development, Walmart/Sam's Club, Lowe's) and a major mixed-use project (Crossings at Exum Place).

Property Details for 2051 Highland Ave

Property type
Retail properties, Restaurants
Square Feet
3,729 SF
Class
A
Year Built/Renovated
1986/2005
Buildings
1
Lot Size (sq. ft)
54,886 SF
Units
1

Location Insight

City
Jackson
County
Madison
State
Tennessee
Latitude
35.6578151
Longitude
-88.8283638
2051 Highland Ave, Jackson, Tennessee

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2051 Highland Ave
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