3966 Park Ave Memphis, TN 38111-7402

Property Details for 3966 Park Ave

Year built

1992

Lot size

0.65 lot acres

Property size

2,885 SF

Zone code

CMU-1

Property type

Drive through restaurants

APN

046-050- - -00030-C

APU

04605000030C

Description

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.

Location Insight

City

Memphis

County

Shelby

State

Tennessee

Longitude

-89.9305

Latitude

35.1079

CBSA code

32820

CBSA name

MEMPHIS, TN-MS-AR METROPOLITAN STATISTICAL AREA

Property Tax & Assessments