Birmingham (Vestavia Hills) AL - Arby's

Description:

SRS National Net Lease is pleased to offer the opportunity to acquire the fee simple interest (land & building ownership) in an absolute NNN leased, Arby’s investment property located in Vestavia Hills (Birmingham MSA), Alabama. The tenant, Arby’s, has over 9 years remaining with 4 (5-year) options to extend, demonstrating their commitment to the site. The lease features 7.50% rental increases every 5 years throughout the initial term and at the beginning of 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 a passive investor. Arby’s, founded in 1964, is the second-largest sandwich restaurant brand in the world with more than 3,600 restaurants in nine countries. It is an Subsidiary of Inspire Brands. Inspire was founded in February 2018 with a vision to invigorate great brands and supercharge their long-term growth.

The subject property is located near the signalized, hard corner intersection of Montgomery Hwy and Columbiana Rd with a combined 58,800 VPD. The site benefits from nearby direct on/off ramp access to Interstate 65, a major thoroughfare that averages over 128,600 vehicles passing by daily. The asset is located in a dense retail corridor, with numerous nearby national/credit tenants including Publix, Starbucks, Burger King, Taco Bell, O’Reilly Auto Parts, McDonald’s, and many more. Strong tenant synergy increases consumer draw to the immediate trade area and promotes crossover store exposure to the site. Furthermore, the Arby’s is in close proximity to Vestavia Hills High School (1,578 students) and Green Valley Elementary School (476 students), further increasing consumer traffic to the immediate trade area. The 5-mile trade radius is supported by 153,000 residents and 112,000 employees, providing a direct consumer base from which to draw. Residents within a 5-mile radius of the subject property boast an affluent average household income of $133,380.