Hardee's NNN Lease
For Sale
$1,995,000
7762 Oak Ridge Hwy, Knoxville, TN 37931
Corporate Hardee’s NNN lease with ±5 years remaining.
Property Size3,612 SF
Lot Size1.45 Acres
Price / SF$552.33
Days on Market100
Property Features for 7762 Oak Ridge Hwy
General Information
Standard status
Active
Size
3,612 SF
Lot size
1.45 Acres
Property subtype
Restaurant
Lease Type
Absolute Net
Amenities
Signalized, Hard Corner Location West Knoxville's Primary Growth Corridor | This Region has Experienced Nearly 20% Growth Since 2010, Nearly Double that of Statewide and National Growth Rates
Flexible Single-Tenant Configuration with a Large Lot of ±1.45 Acres and Abundant Parking, Offering Maximum Visibility and Access Along Oak Ridge Highway (Highway 62)
Positioned Amidst Significant Residential and Retail Expansion: Over 2,400 New Residential Units Have Been or are Being Constructed in the West Knoxville Region
Building Details
Building Size
3,612 SF
Listing Agency:
(949) 350-5431
Listed By:
Ron Duong · License #License(s): CA: 01438643
(949) 350-5431
Source:
Marcusmillichap
Added: May 21
Changed: Aug 8
Last Checked: Aug 26 at 5:37AM
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 Ron Duong
Investment Insights
Based on property information with market context.
This commercial property features a corporate Hardee’s operating under an absolute NNN lease, offering income stability with future flexibility. The lease has approximately 5 years remaining, providing passive income and potential mark-to-market upside at expiration or through a negotiated early termination. The property benefits from its location on Oak Ridge Highway (Highway 62), a major arterial connecting Downtown Knoxville, West Knoxville, and Oak Ridge, experiencing strong daily commuter traffic. The surrounding West/Northwest Knoxville area is experiencing growth, with approximately 5,600 housing units permitted countywide from 2015-2024 and multiple large commercial projects advancing nearby. Ongoing Highway 62 enhancements, including turn lanes, sidewalks, greenways, and lane expansion, are further strengthening accessibility and long-term corridor appeal. The property offers superior visibility with prominent pylon signage, outdoor seating, and a dedicated drive-thru configuration designed for high-volume quick-service operations. It is situated on a large approximately 1.45-acre parcel featuring ample parking and multiple points of ingress and egress. Knoxville benefits from stable job growth, low unemployment, and a diverse employment base anchored by education, healthcare, manufacturing, and technology. Residential and commercial development trends indicate continued westward expansion, positioning the property within a strengthening submarket. The building size is 3612 square feet.
Key Highlights
- Absolute NNN Lease with ±5 Years Remaining, offering passive income.
- Located on Oak Ridge Highway (Highway 62), a major arterial with strong commuter traffic.
- Situated in a growing region of West/Northwest Knoxville with significant residential and commercial development.
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$60,538
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
3.03%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$1,210,760
$1.2M
Cap Rate 7%
$864,829
$864.8K
Cap Rate 9%
$672,644
$672.6K
Market Conditions
NOI Build-Up for 3,612 SF
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.
Gross rent
$84.5K $23.40/SF
− Vacancy
−$3.8K −$1.05/SF
EGI
$80.7K $22.35/SF
− OpEx
−$20.2K −$5.59/SF
NOI
$60.5K $16.76/SF
Area
Knoxville, TN
Vacancy
4.50%
Lease Rate
$23.40 /SF/Yr
Expense Ratio
25.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$1,210,760
Cap Rate 7%
$864,829
Cap Rate 9%
$672,644
Alternative Uses
Best Use
Specialty Retail
$864.8K
$756.7K – $1.01M
NOI $60,538 @ 7.0% cap · market cap 3.03%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$894.6K
$782.8K – $1.04M
NOI $62,623 @ 7.0% cap · market cap 3.14%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
156
Businesses Nearby
Explore this area
Business Placement
Demographics for 37931, TN
31,358
Population
12,770
Households
2.5
Avg Household Size
38
Median Age
45%
College-Educated
94%
High-School Grad
28.4 sq mi
ZIP Area
1,104
Density / Sq Mi
$91,284
Median Household Income
$52,207
Median Earnings
$1,450
Median Rent
$317,100
Median Home Value
Market
Vacancy Rate% for Retail in Knoxville, TN
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Drive through restaurant - Corporate Hardee’s NNN lease with ±5 years remaining.
Where is this drive through restaurant located?
The property is located at 7762 Oak Ridge Hwy Knoxville, TN.
What is the asking price?
The asking price for this property is $1,995,000.
What are key features of this property?
This property features: Absolute NNN Lease with ±5 Years Remaining, offering passive income.; Located on Oak Ridge Highway (Highway 62), a major arterial with strong commuter traffic.; Situated in a growing region of West/Northwest Knoxville with significant residential and commercial development.
