3966 Park Ave Memphis, TN 38111-7402
This exceptional investment opportunity presents a freestanding, 2,267 square foot Burger King restaurant situated on a 0.65-acre lot in Memphis, Tennessee. The property boasts a prime location across from the University of Memphis Park Avenue Campus and near the main campus, benefiting from a large student population and significant foot traffic. Additional nearby businesses include Save-A-Lot, Checker's, dd's Discounts, and more, further enhancing the property's visibility and accessibility. The absolute net lease, commencing September 1, 2017, and expiring September 30, 2037, offers a substantial remaining term of 12.9 years, providing long-term stability and predictable cash flow. Rent increases of 10% every five years are built into the lease, ensuring consistent growth in rental income. The property's current annual net operating income (NOI) is $111,822, representing a 6.00% cap rate and a price per square foot of $822.10. The lease is backed by Restaurant Brands International, Inc., the parent company of Burger King, a globally recognized and financially stable corporation. The property is a single-story building with a drive-through window, catering to the convenience of customers. With a 100% occupancy rate since its opening, this investment offers a compelling combination of stability, growth potential, and passive income generation in a tax-advantaged state (Tennessee has no state income tax). The lease includes two five-year renewal options. This is an absolute NNN lease, minimizing the landlord's responsibilities. The property's strong tenant, favorable lease terms, and strategic location make it an attractive investment for discerning buyers seeking a secure and profitable addition to their portfolio.
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Burger King Restaurant
PRINCIPAL USE R6 RU-1 RU-3 CMU-1 CMU-2 CMP-2 Woodworking, including Cabinet Makers and Furniture Manufacturing □ ■ Warehouse □ □ Recycling Drop-off Facility □ □ □ Neighborhood Garden ■ ■ ■ ■ ■ ■ Planned Development1 □ □ □ 1. Planned Developments approved prior to the adoption of the University District Overlay (July 22, 2009) are not affected. Definitions Fo…
Cap rate
Implied · in-place · derived from last sale + estimated NOIValue
AI, CAP & Alternative Use estimations · Realmo proprietary blendProperty tax & assessments
Tax year 2022Comparables
6 recent transactions · within 1.5 miComparable in this City
Similar Nearby for Sale
Similar Nearby for Lease
Property description
Physical attributes from public recordsZoning & alternative use
CMU-1 · Memphis, TNPRINCIPAL USE R6 RU-1 RU-3 CMU-1 CMU-2 CMP-2 Woodworking, including Cabinet Makers and Furniture Manufacturing □ ■ Warehouse □ □ Recycling Drop-off Facility □ □ □ Neighborhood Garden ■ ■ ■ ■ ■ ■ Planned Development1 □ □ □ 1. Planned Developments approved prior to the adoption of the University District Overlay (July 22, 2009) are not affected. Definitions For the purposes of this Chapter, the following words and terms shall have the following meanings: A. Blank Wall Area - For the purposes of this chapter, blank wall area shall mean a portion of the exterior façade of the building which does not include a substantial material change (paint color is not considered a substantial change; windows or doors; or columns, pilasters or other articulation greater than 12 inches in depth. B. Shopfront Frontage - See Section 8.3.6. C. Urban Frontage - See Section 8.3.6. D. Transparent - Material through which light can travel with minimal scattering so that objects can be viewed clearly through it. E. Translucent - Material through which light passes, but in such a way that a clear image cannot be formed of the object viewed through it. F. Upper-Story Residential - See definition in Section 12.3.1. University District Overlay Sign Regulations A. Established There is established a uniform sign code of the University District which shall read as set forth in this chapter. The following design provisions apply to any property located within the University District, as defined in the map in Section 8.3.6B. B. Design Regulations - Purpose Signs are a vital component of a community's streetscape and good commercial signage can make a significant contribution to the physical appearance and to the economic prosperity of a community. The design regulations outlined herein are intended to ensure that property owners in the University District have available to them a palette of street graphics that enhances and celebrates the character of the University District. C. Definitions The following defintions shall apply to this Section. In instances where terms are not defined here, refer to the sign defintions in Section 12.3.4. ABOVE-ROOF WALL SIGN means a wall sign which is attached to the façade of the building but portions of which extend above the Roof Line. AWNING SIGN means a sign painted on or attached flat or flush against the surface of an awning, but not extending above, below or beyond the awning or attached to the underside. Awnings are typically made of cloth or a cloth substitute and are typically hung at an angle.
Costs & Benchmarks
Operating expenses, capex projections, utility benchmarks, and submarket comparables — all in one view.
Risks
Flood, climate, environmental, title, and tenant-concentration risk — surfaced with mitigations and source citations.
