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JLL is pleased to offer for sale the ground lease interest in a single-tenant Wendy’s (the property or asset) located in Chicago, Illinois. This rare corporate operating Wendy’s is subject to a triple-net lease with approximately 12 years of remaining lease term and no landlord responsibilities. Following the initial term of the lease, the Tenant has three, 5-years renewal options with 10% rental escalations every five years during each period.
The asset benefits from a drive-thru window and lighted intersection positioning just two blocks north of Interstate-290. This property possesses strong real-estate fundamentals and offers investors the unique opportunity to acquire an urban net leased investment leased to one of the top quick service restaurant chains in a highly trafficked area of downtown Chicago.
RARE CORPORATE OPERATING WENDY’S WITH 10% RENTAL INCREASES
•Approximately 95% of all Wendy’s locations are operated by franchisees. This rare corporate operating Wendy’s was built in 2017 and offers a lease with 10% increases every five years backed by a corporate guaranty
•Last year Wendy’s achieved a record nine consecutive years of system-wide same-store sales growth, increasing sales by 4.4% and opening 182 new restaurants
•Wendy’s is the #2 ranked fast-food hamburger chain in America, second to only McDonald’s
•Founded in 1969, Wendy’s currently has approximately 6,800 restaurants and annual revenue of more than $1.71 billion
HIGHLY TRAFFICKED URBAN NET LEASED INVESTMENT OPPORTUNITY
•Situated just three miles west of the Chicago CBD, this Asset offers real estate of long term intrinsic value in the most diversified economy in the U.S.
•More than 431,000 residents live within a three-mile radius of the property, with average annual household income of more than $65,000
•The Asset is strategically located on South Western Avenue, providing maximum visibility and accessibility to more than 24,000 vehicles passing on a daily basis
•Situated just blocks away from the United Center and Interstate-290 (220,000 VPD), positioning the asset in close proximity to one of Chicago’s main entertainment venues and the primary interstate throughout the downtown area
LONG TERM NET LEASE STRUCTURE WITH ZERO LARDLORD RESPONSIBILITIES
•This Asset features recent 2017 construction with Wendy’s newest and most up-to-date restaurant format and drive-thru window
•Offers 12 years of primary lease term remaining
•The Tenant is operating on a triple-net ground lease structure with zero landlord responsibilities
•The lease provides for three, five-year options with 10% increases every five years after the COVID-19 rent adjustment, offering a growing and stable income stream