Single-tenant, triple net (NNN) lease. Acquired for a private buyer and well suited as a 1031 exchange replacement property.
QEM Estates represented the buyer on this freestanding Burger King in Decatur, Indiana, a single-tenant, triple net (NNN) lease investment. The property closed at $1.47 million on a 5.25 percent cap rate, with 18 years of primary lease term remaining at closing.
For the buyer, the result is a hands-off income position backed by one of the most recognized brands in the quick-service category, with the tenant covering the property taxes, insurance, and maintenance. Single-tenant NNN assets like this one are also a common 1031 exchange replacement property, and QEM worked only for the purchaser from the first offer through closing.
Approximate, from purchase price multiplied by the cap rate.
This is a single-tenant, freestanding quick-service restaurant on a triple net (NNN) lease. Under a true NNN structure the tenant pays the property taxes, building insurance, and maintenance, so the owner holds a near-passive position. Restaurant pads like this one are built around drive-through traffic, and the leases usually run long with scheduled rent increases written into the term.
Under a triple net (NNN) lease the tenant carries the three major costs of the property. The owner collects rent with minimal landlord responsibility.
On a buyer-representation engagement, QEM works only for the purchaser, never the seller. For this deal that meant testing the rent against local comparables, reading the lease for landlord obligations and renewal options, confirming the remaining term, and guiding the buyer through due diligence to a clean close. The 5.25 percent cap rate reflected the balance between the tenant, the lease term, and the Decatur market.
We pressure-tested the price, rent, and cap rate against the market.
We read the lease for term, renewal options, and landlord obligations.
We guided the buyer through due diligence to a clean closing.
Indiana has drawn steady population and retail growth across metros like Indianapolis, Fort Wayne, Evansville, and South Bend. That demand supports well-located, single-tenant net-lease retail like this Burger King. QEM Estates represents buyers on NNN acquisitions and 1031 exchanges across Indiana and nationwide.
No. This transaction has closed and QEM Estates represented the buyer. To source a similar single-tenant net-lease property, see our NNN Buyer Representation service or get in touch.
The cap rate is a property’s annual net income divided by its price, so a 5.25% cap means the income yields about 5.25 percent of the purchase price in the first year. Tenant strength, lease term, and location all move the number. We break this down in NNN Properties for Sale: Beyond the Cap Rate.
Yes. Single-tenant NNN properties are a common 1031 replacement because ownership is largely passive. See our 1031 Exchange Properties page for how the exchange timeline works.
As a buyer’s representative, QEM worked only for the purchaser: underwriting the deal, reviewing the lease, and managing due diligence through closing. Learn more on our NNN Buyer Representation page.
QEM Estates sources and closes single-tenant net-lease properties for investors nationwide. Tell us your criteria and we will bring you deals that fit.
Hero photograph is representative of the Burger King brand. Photo: Tyler A. McNeil, CC BY-SA 4.0.
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