Net Lease Freddy’s Frozen Custard & Steakburgers Sold Date May 14, 2024
The Boulder Group has completed the sale of a single tenant Freddy’s Frozen Custard & Steakburgers property located at 10201 Central Avenue NE in Albuquerque, NM for $1,975,000. Zach Wright and Brandon Wright exclusively represented the seller in the transaction. The seller was a California-based investor and the purchaser was a family office based in Florida.
The Freddy’s Frozen Custard & Steakburgers property is positioned within a regional retail destination that features a Costco, Home Depot, Sam’s Club, Walmart Supercenter and Target. The property is located just west of the major signalized intersection of Central Avenue NE and Eubanks Boulevard (57,000+ VPD) and just north of Kirtland Airforce Base, the largest employer in Albuquerque with over 23,000 employees.
The Freddy’s Frozen Custard & Steakburgers property features an absolute triple net lease with zero landlord responsibilities and 10% rental increases every five years. Freddy’s has approximately 515 locations and is one of the fastest growing chains in the United States.
This was the 6th single tenant Freddy’s Frozen Custard & Steakburgers property sold nationally by Zach Wright and Brandon Wright within the past ten months. The two brothers previously sold the four lowest cap rates ever recorded nationally for Freddy’s properties according to CoStar.
“Asking cap rates for STNL retail properties are at their highest level in a decade. Some savvy investors are currently acquiring well-located STNL properties and are entering the market with an attractive basis. We’ve seen an uptick in demand from these buyer types. This Freddy’s property garnered interest from investors throughout the U.S. and many that were not in a 1031 exchange,” stated Zach Wright, Vice President.
“Quick service restaurant properties with drive-thrus that are priced below $2,500,000 continue to be in demand amongst net-lease investors. We were able to generate multiple qualified offers. This was the third Freddy’s property that we have sold in the past few months,” added Brandon Wright, Associate.
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