Acquired in late 2021, this Hardee’s location was on a short-term ground lease with three, five-year options remaining. The rent for this property was well below market at closing, and despite the low rent, the OneV Capital team acquired this property at a favorable cap rate.
The subject property is located in the highly sought-after Myrtle Beach, SC. Myrtle Beach is a major hub for tourism and is one of the fastest-growing cities in the United States. The property is within walking distance to the beach as well as a number of resorts and attractions, and the property is located on a major thoroughfare for the area.
OneV Capital plans to hold this property long term. Ground rent is very low for this property- this offers the ability to realize a major upside opportunity in the event the tenant elects not to renew its lease. The property is also located in a high barrier to entry market, meaning demand from prospective future tenants will be very high in the event the property needs to be re-tenanted.