2051 Highland Ave Jackson, TN 38305-4918

Property Details for 2051 Highland Ave

Year built

1986

Lot size

1.30 lot acres

Property size

3,486 SF

Zone code

SC1

Property type

Drive through restaurants

APN

057055M E 00300

APU

057055ME00300

Description

This exceptional investment opportunity presents a 3,729 square foot KFC restaurant located at 2051 N Highland Ave, Jackson, TN 38305. The property boasts a new 20-year absolute NNN lease, commencing September 30, 2024, and guaranteed by a 161-unit subsidiary of a major US franchisee group. The lease includes 1.5% annual rent increases beginning in year seven and four, five-year renewal options, extending the lease to 2044. The property's strong financial performance is highlighted by 2023 sales exceeding the national KFC average by 115%, a trend that has continued for the past three years. The current Net Operating Income (NOI) stands at $213,302, yielding a 5.85% cap rate at the asking price of $3,646,000. Situated on a 1.26-acre lot with 62 parking spaces, the property is an outparcel to the Old Hickory Mall, a 538,641 square foot shopping center anchored by JCPenney and Belk, attracting over 1.2 million annual visitors. The location benefits from excellent visibility and access from Highway 45 (Highland Ave), boasting over 53,500 vehicles per day. The property underwent a complete remodel in 2005 and 2023. This prime retail location is within close proximity to numerous amenities, including a planned large-scale event center, a Kroger-anchored shopping center, I-40, a major hospital, and several hotels. The Jackson market's strong economy, fueled by major employers and a significant student population, further enhances the investment potential of this property. The KFC brand's consistent ranking among top fast-food chains adds to the overall appeal and stability of this investment.