Overview

Description

SRS National Net Lease Group is pleased to offer the opportunity to acquire the fee simple interest (land & building ownership) in an absolute NNN leased, drive-thru equipped, freestanding Zaxby’s investment property located in Irondale, Alabama (Birmingham MSA). The tenant, Credit to Chicken, LLC has approximately 19 years remaining in their current term and 4 (5-year) options to extend, demonstrating their long-term commitment to the site. The lease features 2% annual rental increases beginning in year 7 of the initial term and throughout each option period, steadily growing NOI and hedging against inflation. The lease is absolute NNN with zero landlord responsibilities making it an ideal, management free investment opportunity for passive investor. Founded in 1990, Zaxby’s is a well-known and popular concept that has grown to over 925 locations across 19 states. The lease is guaranteed by an experienced franchise operating 19 units.

Zaxby’s is strategically located at the signalized hard corner intersection of Montclair Road and Oporto Madrid Boulevard which averages over 37,000 vehicles per day. Furthermore, the site benefits from nearby direct access to Interstate 20 (47,100 VPD) and U.S. Highway 78 (24,400 VPD), making this an ideal centralized location with easy commutes. The asset is positioned adjacent to Eastwood Village, a 350,000 SF community center that’s home to Walmart Supercenter, Ross Dress for Less, Office Depot, Michaels, Walgreens, and more. Other nearby national/credit tenants include Home Depot, Publix, Burlington, Winn Dixie, Aldi, CVS, Dollar General, and more. Strong tenant synergy increases consumer draw to the immediate subject trade area and promotes crossover tenant exposure to the site. The subject is ideally situated near multiple apartment complexes including The Union at Cooper Hill (281 units), The VUE at Crestwood Apartments (148 units), Tapestry Park (354 units), and more, providing a direct residential consumer base from which to draw. Located just 8 miles from Birmingham, the 5-mile subject trade area is supported by more than 124,000 residents and 175,000 daytime employees who earn a healthy average household income of more than $115,000.

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