For Sale
$1,385,000

712 HwyCovington, TN 38019

High-yield NNN lease, prime location.

Overview

Added:
Dec 11, 2024
Days on market:
114
This exceptional investment opportunity presents a brand-new, single-tenant Scooter's Coffee property located at 712 U.S. Hwy 51, Covington, Tennessee, 38019. The 664 square foot building, constructed in 2024, sits on a 0.89-acre lot and boasts a 10-year absolute NNN lease commencing June 20, 2024, and expiring June 30, 2034. The lease includes six 5-year renewal options with a 10% rent increase every five years, ensuring consistent income growth. The property enjoys 100% occupancy and generates a strong net operating income (NOI) of $94,169, resulting in a compelling 6.80% cap rate. The asking price is $1,385,000, translating to a land value of $35.73 per square foot. This strategically positioned property benefits from high visibility and accessibility on a major retail thoroughfare, Hwy 51. Nearby national retailers include Family Dollar, Walgreens, Dollar General, and O'Reilly Auto Parts, further enhancing its desirability. The property's proximity to hotels with over 250 rooms within a one-mile radius and a Walmart-anchored shopping center within 2.5 miles adds to its strong retail draw. Furthermore, its location within four miles of Dyersburg State Community College and Baptist Memorial Hospital-Tipton provides a substantial customer base. Scooter's Coffee, a rapidly expanding franchise with over 800 locations, is ranked #2 on Entrepreneur's Franchise 500 list in 2024, signifying its brand strength and market appeal. This investment offers a secure, high-return opportunity in a thriving retail market.

Highlights

  • 0.89-acre lot with drive-thru.
  • New 10-year absolute NNN lease with personal guarantee.
  • Brand new construction, tenant opened June 2024.
  • Six 5-year options to extend, with 10% rent increases each term.
  • Excellent location on Hwy 51, a major retail corridor.
  • Scooter's Coffee, a top-performing franchise (ranked #2 on Entrepreneur's Franchise 500 in 2024).

Property Details for 712 Hwy

Property type
Retail properties
Square Feet
664 SF
Year Built
2024
Buildings
1
Stories
1
Lot Size (sq. ft)
38,768 SF
Units
1

Location Insight

City
Covington
County
Tipton
State
Tennessee
Latitude
35.571618657051
Longitude
-89.645753514694
712 Hwy, Covington, Tennessee

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712 Hwy
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