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Freddy's Frozen Custard & Steakburgers 3720 Mary Taylor Rd 2,964 SF Retail Building Birmingham, AL 35235 $2,457,600 ($829.15/SF) 5.90% Cap Rate

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INVESTMENT HIGHLIGHTS

Located in Birmingham, the largest MSA in Alabama
Absolute triple net lease with no landlord responsibilities
Regional retail destination that includes Target, The Home Depot, Lowe’s, Best Buy, Hobby Lobby, and The Pinnacle (a 644K SF lifestyle center)

New 20-year lease with 2% annual rental increases
Affluent area with average annual household income of over $122,000 within one mile
Positioned just north of the Interstate 59 and Interstate 459 interchange

EXECUTIVE SUMMARY

The Boulder Group is pleased to exclusively market for sale a single tenant Freddy’s Frozen Custard & Steakburgers sale leaseback property located in Birmingham, AL. The property is in an affluent area and is positioned just northeast of the Interstate 59 and Interstate 459 interchange along Gadsden Highway (U.S. Route 11). The Freddy’s property is positioned within a regional retail destination that features Target, The Home Depot, Lowe’s, Best Buy, Hobby Lobby, and The Pinnacle (a 644K SF lifestyle center).
The twenty-year absolute triple net lease will feature 2% annual rental increases. TThe lease will be guaranteed by Bama Custard & Bama Custard 2, which operates seven Freddy’s locations in Alabama, and is controlled by ERC Hospitality. ERC Hospitality is the 5th largest Freddy’s franchisee operating 33 Freddy’s locations (across Alabama, Colorado, Texas, and New Mexico) with 4 additional restaurants
in development. Freddy’s Frozen Custard & Steakburgers is one of the fastest growing chains in the U.S. and operates over 515 locations across the country.

OM - Freddy's - Birmingham AL (Mary Taylor) - The Boulder Group

PROPERTY FACTS

Sale Type

Investment NNN

Sale Conditions

1031 Exchange

Property Type

Retail

Property Subtype

Fast Food

Building Size

2,964 SF

Building Class

Year Built

2020

Price

$2,457,600

Price Per SF

$829.15

Cap Rate

5.90%

NOI

$145,000

Tenancy

Single

Building Height

1 Story

Building FAR

0.11

Lot Size

0.65 AC

MAJOR TENANTS

Accommodation and Food Services
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Freddy grew up on a farm near Colwich, Kansas, just outside of Wichita. After finishing high school, Freddy enlisted in the U.S. Army, serving in the Pacific Rim region during World War II. A self-proclaimed “regular guy”, he was awarded the Purple Heart for injuries sustained during service, as well as a Bronze Star for valor. Freddy then returned to Kansas, started a family, worked hard in the hospitality industry for 56 years, and raised six children with his wife, Norma Jean. Freddy's family values and patriotic service to his country is the foundation of Freddy's Frozen Custard and Steakburgers®, and these values have inspired us to do everything The Freddy's Way.