NNN Ground-Leased Restaurant
5002 Hinkleville Rd Paducah, KY 42001
New
For Sale
$2,442,307
Currently being renovated for a Chuy’s Restaurant under an NNN ground lease with six years remaining.
Property Size7,885 SF
Price / SF$309.74
Days on Market2
Property Features for 5002 Hinkleville Rd
General Information
- Standard status
- Active
- Size
- 7,885 SF
- Property subtype
- Restaurant
Listing Agency:
Marcus & Millichap | Dallas
(972) 755-5279
Listed By:
John Paine · License #License(s): TX: 764689
(972) 755-5279
Source:
Marcusmillichap
Added: Jul 22
Changed: Jul 23
Last Checked: Jul 23 at 2:35AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Marcus & Millichap | Dallas
Investment Insights
Based on property information with market context.
The property is a conventional restaurant site that is being renovated from its former Cheddar’s Scratch Kitchen use into a Chuy’s Restaurant. The asset is secured by a NNN ground lease with six years remaining, with zero landlord responsibilities stated. Lease terms include 10 percent rental escalations every five years and three additional five-year renewal options.
The property is positioned for visibility and access from Hinkleville Road, which the listing states carries nearly 22,707 vehicles per day, and it is located just off Interstate 24, with average daily traffic noted at nearly 22,264 vehicles. The site sits directly across from Kentucky Oaks Mall and shares a shopping center with retailers including Academy Sports, Dollar Tree, PetSmart, and Crumbl Cookies, with nearby restaurant anchors such as Texas Roadhouse, Buffalo Wild Wings, Panera, IHOP, and Arby’s.
The property is positioned for visibility and access from Hinkleville Road, which the listing states carries nearly 22,707 vehicles per day, and it is located just off Interstate 24, with average daily traffic noted at nearly 22,264 vehicles. The site sits directly across from Kentucky Oaks Mall and shares a shopping center with retailers including Academy Sports, Dollar Tree, PetSmart, and Crumbl Cookies, with nearby restaurant anchors such as Texas Roadhouse, Buffalo Wild Wings, Panera, IHOP, and Arby’s.
Key Highlights
- Former Cheddar’s Scratch Kitchen building being renovated for a Chuy’s Restaurant.
- NNN ground lease with 6 years remaining and zero landlord responsibilities.
- Lease includes 10% rental escalations every five years, plus three additional five‑year renewal options.
Financial Insights For Specialty Retail
Simulate Cap Rate and NOI
NOI Build-Up
- Vacancy
- income lost from leasable area expected to sit empty during the year — subtracted from gross rent.
- EGI (Effective Gross Income)
- gross rent minus vacancy losses — the realistic income before paying operating costs.
- OpEx (Operating Expenses)
- recurring costs to operate the property (property tax, insurance, utilities, maintenance, management) — excludes financing and capital improvements.
- NOI (Net Operating Income)
- income a property generates after operating costs but before financing and taxes.
| Component | $ | $/SF |
|---|---|---|
| Gross rent | $129.6k | $16.44 |
| − Vacancy | −$4.5k | −$0.58 |
| EGI | $125.1k | $15.86 |
| − OpEx | −$31.3k | −$3.97 |
| NOI | $93.8k | $11.90 |
7,885 SF · lease $16.44/SF/yr · vacancy 3.50% · expense 25.00%
Alternative Uses
Best Use
Specialty Retail
$1.34M
$1.17M – $1.56M
NOI $93,819 @ 7.0% cap · market cap 3.84%
Second Best
—
—
no second resolved use
Theoretical Best
Warehouse
$1.64M
$1.44M – $1.92M
NOI $115,003 @ 7.0% cap · market cap 4.71%
Zoning and permitted uses should be independently verified with local authorities.
Property Analytics
Location Intelligence
Current Use by Public Records
Inn
Hotel & Motel
Cheddar's Scratch Kitchen
Restaurant
FAQs
What type of property is this?
Conventional restaurant - Currently being renovated for a Chuy’s Restaurant under an NNN ground lease with six years remaining.
Where is this conventional restaurant located?
The property is located at 5002 Hinkleville Rd Paducah, KY.
What is the asking price?
The asking price for this property is $2,442,307.
What are key features of this property?
This property features: Former Cheddar’s Scratch Kitchen building being renovated for a Chuy’s Restaurant.; NNN ground lease with 6 years remaining and zero landlord responsibilities.; Lease includes 10% rental escalations every five years, plus three additional five‑year renewal options.
