MEMPHIS, Tennessee – Hanley Investment Group Real Estate Advisors, a nationally recognized real estate brokerage and advisory firm specializing in the sale of retail properties, today announced that the company has arranged for the sale of two retail leasehold properties single-tenant net occupied by Burger King in Memphis, Tennessee to separate buyers. The combined value of sales was approximately $ 6 million and traded at record cap rates. Hanley Investment Group has sold four Burger King single-tenant net rental investments in the past 90 days.
Hanley Investment Group Executive Vice President Matt Burnett, in association with Scott Reid & ParaSell, Inc., represented the seller, a Los Angeles-based private investor in both transactions.
According to Burnett, Burger King had long-term absolute triple net leases on the two sites, which were operated by Carrols Corporation, the world’s largest Burger King franchise with more than 1,000 sites.
The first property was located less than a mile from Memphis International Airport and three miles from Graceland, a 13.8-acre estate that once belonged to Elvis Presley. Graceland is one of the most visited private residences in the United States. Graceland receives approximately 600,000 visitors each year, compared to the White House and the Biltmore Estate, both of which receive approximately 900,000 visitors per year.
The property, a 2,860 square foot Burger King with drive-thru, is located at 4650 Millbranch Road and was built in 2007 on 0.85 acres of land. The selling price was $ 3,462,694, which is a cap rate of 4.75%, an all-time record cap rate for a Burger King in Tennessee, and one of the top five top cap rates. country for a Burger King franchise in 2021.
âWe opened escrow within a week of the property being marketed and closed the list price,â Burnett said. “We also negotiated extended escrow periods and coordinated the timing of the two closings to maximize the seller’s 1031 exchange.”
The buyer was a New York-based private investor and was represented by Michael Soleimani, managing partner of New York-based SAB Capital.
The second property, a 2,124 square foot single-tenant drive-thru Burger King, which was built in 2008 on 1.15 acres of land, is located at 5305 Winchester in Memphis. The sale price was $ 2,475,000, which represents a cap rate of 4.82%, one of the five lowest cap rate closings nationwide for a Burger King franchisee in 2021.
âWe got five offers in the property’s first week of marketing and closed at 97% of the list price,â said Burnett. “We secured an all-cash buyer based in Southern California and negotiated a seven-day due diligence period and a 30-day close.”
According to Burnett, investors appreciated the fact that the Burger King has a long-term absolute triple net lease and is operated by Carrols Corporation.
The buyer was a private investor based in Santa Barbara, California, and was represented by Jonathan Selznick, principal at Lee & Associates in Ontario, California.
In May, Burnett and ParaSell, Inc. represented the buyer in the purchase of a single-tenant Burger King in Augusta, Georgia. The previous month, Burnett, along with ParaSell, Inc., represented the seller in the sale of a single-tenant Burger King in Houston.
âThe demand for single-tenant drive-through restaurants continues to be very strong,â said Burnett. âWe work with many sellers who want to capitalize on this market and buyers who are looking to exit other asset classes or move their shares to other states. A single tenant drive-through restaurant with an absolute triple net long-term lease with a tenant loan provides investor peace of mind and little to no maintenance. We expect cap rates for these types of properties to remain low as demand exceeds supply. “
About Hanley Investment Group
Hanley Investment Group Real Estate Advisors is a real estate brokerage and advisory firm with a transaction history of $ 8.2 billion that specializes in the sale of commercial properties nationwide. Our expertise, proven track record and unwavering dedication to putting customer needs first sets us apart in the industry. Hanley Investment Group creates value by delivering exceptional results through the use of property specific marketing strategies, cutting edge technology and local market knowledge. Our nationwide relationships with investors, developers, institutions, franchisees, brokers and 1031 exchange buyers are unparalleled in the industry, resulting in maximum exposure and pricing for every property. With unparalleled service, Hanley Investment Group has redefined the experience of selling investment property at retail.
For more information visit www.hanleyinvestment.com.
Company Name: Hanley Investment Group Realty Advisors
Contact: Matt Burnett, Executive Vice President
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Address:3500 East Coast Highway, Suite 100
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