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Dairy Queen | 20-Year ABS NNN Lease | Fee Simple

$2,957,000

1840 Lee Ave SW, Cullman, AL 35055

Active
Last Updated: 07/10/2026

5.75

Cap Rate

170,000

NOI

Details:
Cap Rate:    5.75%
NOI:    $170,000
Building Size:    3,466 sqft
Lot Area:    1.414 acres
Class:    C
Units:    1
Year Built:    2015
Floors:    1
Highlights:
  • Top Performing, Drive-Thru Dairy Queen (Financials available upon request)
  • 20-Yeaar Absolute NNN Lease with favorable rental increases
  • Fee Simple Interest: Land & Building Ownership | 3,466 SF Building situated on large 1.42 Acre Parcel
  • Regional Trade Area | Walmart (3M Annual Visitors Placer.AI) | Lowes (943k Annual Visitors according to Placer.AI)
  • Relocation to Superior Positioning in Trade Area | Proven Operations & Loyal Customer Base
  • SMDG LLC | Top Performing Multi-unit & Multi-brand franchisee in Alabama
Description:

Faris Lee Investments is pleased to present the rare opportunity to acquire the fee simple interest in a Dairy Queen secured by a new 20-year absolute NNN lease with zero landlord responsibilities and 10% rental increases every five years. Ranked among the top 11% of Dairy Queen locations nationwide (Placer.ai), the property is positioned within Cullman’s premier regional retail corridor, anchored by a top-performing Walmart (3.0M annual visitors; Top 11% nationwide), Lowe’s (934K annual visitors; Top 7% nationwide), and Townsquare Shopping Center (1.6M annual visitors), drawing consumers from a 20-mile regional trade area.

The investment includes a 3,466-square-foot drive-thru restaurant situated on a large 1.42-acre parcel with excellent visibility and access from Interstate 65, connecting Birmingham and Huntsville. Cullman County has grown 7% since 2020 and 18.4% since 2010—approximately 2.7 times faster than the U.S. average—and is supported by a diversified economy anchored by more than 150 manufacturers, over 7,000 manufacturing jobs, and Walmart’s recently announced $350 million expansion of its 1.3-million-square-foot distribution center.

The offering is an ideal opportunity to acquire a trophy corporate net lease investment in one of the Southeast’s strongest growth markets.

Located along Lee Ave. SW in Cullman’s primary retail corridor near Interstate 65 with strong regional traffic and anchor tenants such as Walmart and Lowe’s.

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