Freddy's Frozen Custard & Steakburgers

Description:

Matysek Investment Group is pleased to present this sale-leaseback opportunity to purchase a brand new Freddy’s Frozen Custard & Steakburgers on a 20-year, absolute NNN lease with 10% rental increases throughout the primary term and options. The franchisee, Salim Development Group, LLC (SDG), will personally guaranty (high net worth) and is a multi-concept operator with over 22 businesses (3 Freddy's, 17 Wienerschnitzels, and multiple car washes). Freddy’s has a development agreement with SDG to build 12 total stores over the next 7 years, which an aggressive yet calculated growth plan (contact Broker for article link). Freddy’s currently has 512 locations which has grown from 400 just a few years ago. The site had it’s grand opening July 30, 2024 and is projected to do over $3M in annual sales (their Fontana location is on pace to do ~$2.9M in sales and Norco is projected to do more). SDG carefully hand picks all their locations, and self develops the majority. This care has led to SGD being one of the most profitable franchisees in each respective concept. This triple net lease includes an effective inflation hedge with 10% rental increases every 5 years including throughout the six 5-year options. Exceptionally located at the busy Hamner Avenue (37,000+ VPD), this location is projected to have exceptional sales volumes and be highly profitable, securing the investor sentiment that the rent will always be paid in full and on time.





Brand New 20-year NNN Sale-Leaseback | Zero Landlord Responsibilities with 10% rental increases every five years and Six (6), five (5) year option periods.
Fast Growing Tenant | has approximately 512 locations and ranked the #8 as the Fastest Growing Chains in the U.S. 
Strong Experienced Guarantor | The franchisee, Salim Development, LLC, operates more than 22 locations and multiple concepts, with plans for additional growth and personal guarantee
Strong Sales Projections | Sales Projections are over $3M annually based on similar stores
High Profile Location | Located at the heart of heavily trafficked Hamner Avenue (37,000+ VPD)
Strong Demographics | 290,000 residents within a 5 mile radius
Affluent Neighborhood | Average median income of $109,000 Within a 1 Mile Radius
 

Documents: