Net Leased Freddy’s Frozen Custard & Steakburgers Sold Date February 29, 2024
The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant Freddy’s Frozen Custard & Steakburgers property located at 2945 Dougherty Ferry Road in Valley Park, MO for $2,500,000.
Zach Wright and Brandon Wright exclusively represented the seller in the transaction. The seller was a Midwest-based development company and the purchaser was an all-cash 1031 exchange buyer based in the Western U.S. This was the 5th Freddy’s Frozen Custard & Steakburgers property sold nationally by Zach Wright and Brandon Wright within the past eight months and 3rd in Missouri. The two have also sold the four lowest cap rates ever recorded nationally for Freddy’s properties according to CoStar.
The Freddy’s Frozen Custard & Steakburgers property is positioned just north of the heavily trafficked signalized intersection of Dougherty Ferry Road and Big Bend Road (49,000+ VPD). The property is strategically positioned within a dense and affluent area. There are approximately 165,000 people living within a 5-mile radius with an average annual household income of $155,000.
This net leased Freddy’s Frozen Custard & Steakburgers property features a long-term lease with 10% rental increases every 5 years. The lease is guaranteed by M&M Custard, which is the 3rd largest Freddy’s franchisee. Freddy’s has approximately 500 locations.
“Freddy’s properties offer excellent real estate investment opportunities in addition to their made-to-order steakburgers and frozen custard. Most of their restaurants are well-located in dynamic retail trade areas and feature long-term triple net leases backed by strong franchisees. We continue to see substantial investor interest in Freddy’s properties,” stated Zach Wright, Vice President.
“We have an extensive track record of assisting Western-based investors acquire well-located Midwest properties for aggressive prices. This is the 3rd Freddy’s property in Missouri that we’ve sold in the past eight months to an investor based in the West,” added Brandon Wright, Associate.
About The Boulder Group
The Boulder Group is a boutique investment real estate service firm specializing in single tenant net lease properties. The firm provides a full range of brokerage, advisory, and financing services nationwide to a substantial and diversified client base, which includes high-net-worth individuals, developers, REITs, partnerships and institutional investment funds. Founded in 1997, the firm has arranged the acquisition and disposition of over $9 billion of single tenant net lease real estate transactions. From 2013-2023, the firm was ranked in the top 10 companies in the nation for single tenant retail transactions by both Real Capital Analytics and CoStar. The Boulder Group is headquartered in suburban Chicago and has an office in Denver.
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