Property Type: Retail
Address: 2806 Raleigh Road (US 264 Alt)
Wilson, NC 27893
|CAP Rate: 6%|
Square Feet: 4,726
Tenancy Type: National
Lease Type: Absolute NNN
The Cooper Commercial Investment Group has been exclusively retained by ownership to sell the 100% fee simple interest in the single-tenant, Absolute NNN Denny’s location in the desirable community of Wilson, a destination point between the Capital City of Raleigh and Greenville, North Carolina. The property is being offered for $2,475,000, representing an attractive 6.00% CAP Rate for single-tenant property with more than 13 years or original term remaining.
For over 60 years, Denny’s has been one of America’s largest and most loved family restaurant chains. The chain has more than 1,700 restaurants and has over 4,000 full-time employees. Furthermore, sales were reported at $630 million, a 19% increase over the year prior.
The Denny’s has been operating at this location since 2000 (20 years!) and executed a new 20-year lease commencing in 2013, leaving approximately 13 years remaining with rental increases every 5-years throughout and also offers increases in each option period. The tenant handles all on-site maintenance and repairs to the building including roof and structure and reimburses the Landlord for real estate taxes, leaving ownership with virtually no daily management responsibilities. The franchisee, RJC, LLC, operates 34 locations across 5 states.
The asset is positioned at one of the busiest intersections in Wilson at the intersection of Raleigh Road (US-264 Alt) and Forest Hills Road West with traffic counts at the intersection of over 50,934 VPD from all directions. The property has incredible visibility and access from US-264 Alt, which is the main route through the retail corridor. US-264 is the main roadway that travels between Raleigh and Greenville. The property also sits just 3.5 miles from I-95 (direct access via US-264 Alt) with traffic counts of 36,000 VPD along the highway. Raleigh Road’s constant flurry of traffic is a result of being the city’s main retail corridor and is lined with other complimentary retailers. Some of the surrounding high-traffic generators, include: Walmart Supercenter, Lowes, Target, Starbucks, ALSI, Big Lots, Hobby Lobby, Panera Bread, Five Below, Best Buy, Marshalls, PNC Bank and many more. Wilson’s growth is astonishing in both the residential and commercial sectors with new retailers added, and the city reporting that from 1990 to 2010 with a population increase of more than 40 percent, primarily due to construction of new subdivisions that attracted many new residents.
The center is surrounded by an economically strong residential community with average household incomes of near $90,000 within 1 mile of the featured property. The community offers a wide range of employment between the area’s retail sector and the region’s other major employers, along with being directly between Raleigh-Durham and Greenville for commuters. Located just 1.5 miles is Wilson Medical Center (a Duke LifePoint Hospital), a 294-bed facility with over 1,300 employees and provides comprehensive services to the residents of Wilson County and the surrounding communities. Truist Financial (BB&T) is among Wilson County's top employers, with approximately 2,000 people working in various financial services. Bridgestone Americas operates a plant in Wilson that employs more than 1,800 people who make radial tires for cars and light trucks. Bridgestone recently completed a 6-year, $250 million renovation of the plant, which was retooled to make run-flat passenger car tires that are sold in both the US and Japan. Other large employers in the area include Wilson County Schools that has 14 elementary schools, 6 middle schools and 3 high schools to support the growing area, Smithfield Packing Co., UTC Aerospace Systems, Sandoz Generic Prescription Drugs, Merck Manufacturing Division and Ardagh Group. Additionally, Barton College (2.5 miles) boasts nearly 1,200 students on its campus. Bundling all of the attributes, this Denny’s location will provide an investor the opportunity in today’s market to purchase a superior location with rental increases throughout the term, an asset with excellent visibility and curb appeal that is poised to be a solid investment well into the future.
Full Offering Memorandum