Acquired in early 2019 as part of a 1031 exchange, this Wendy’s in Clarksville, TN features an absolute NNN Lease with over 12 years remaining. The lease is guaranteed by Wendy’s of Bowling Green, Inc. (56+ unit operator). This location features store sales that are well above the national average and a rare 15% increase due two years after the close of escrow. Prior to the close of escrow, the tenant exercised their 5-year option early, proving their commitment to the location.
This property is located at a four-way signalized intersection with average daily traffic counts exceeding 39,425 cars per day. The property also features a recently remodeled store to the new Wendy’s restaurant concept.
OneV Capital plans to hold this property long term and enjoy the favorable return from rental income. The Tenant manages all monthly expenses directly including property tax, insurance, and maintenance which means there is no management or maintenance required. This property is one of a few upcoming transactions to create stable monthly cash flow which can be reinvested into value-add projects in the future.
The Sale & Return
OneV Capital was able to sell this property in 2021 just after the 15% rental increase took effect. The operator had also grown significantly since the purchase which allowed the team to ask for the highest pricing possible. After listing the property, the team was able to generate multiple offers on the property and ultimately closed at list price with an all cash buyer in a 1031 exchange. The sale represented a return of 33%+, not including cash flow generated during the hold period.