Investment Overview

The subject property is an attractive Freddy’s Frozen Custard & Steakburgers located at the signalized corner of Central Avenue and Buena Vista Road, in Hot Springs, Arkansas. Newly constructed in 2019, this Freddy’s Frozen Custard & Steakburgers is situated as a pad to a Wal Mart Supercenter. The restaurant improvements consist of +/-3,145 sq. ft. situated on a +/-.86 acres of land providing 38 on-site parking spaces. Daily car count on Central Avenue is reported at 32,067. The tenant is FFC Franchise Group, a franchisee of Freddy’s Frozen Custard with headquarters in Wichita, Kansas. The tenant signed the lease under their FFC Midwest, LLC entity which currently operates 9 Freddy’s along with 7 other Freddy’s under their FFC SEC, LLC entity. FFC Franchise Group, under different subsidiaries, is also a franchisee of Taco Bell and Seven Brew Coffee. The existing ground lease is absolute triple net (NNN), requiring no landlord responsibilities. There are over 10 years remaining on the initial 15-year term lease that calls for eight (8.0%) percent fixed rent increases every 5 years. Tenant has 3-five year lease options at same terms & conditions. Freddy’s Frozen Custard & Steakburgers chain was founded in 2002 by brothers Bill and Randy Smith, along with their friend and business partner Scott Redler who created the Freddy’s restaurant chain as a tribute to Bill & Randy’s father, Freddy. The first location was in Wichita and has since grown to over 550 locations across 36 states. Hot Springs has a reported city population of 37,971 that will grow during the summer months with tourism. Located within proximity to a variety of demand generators including Hot Springs National Park famous for their historic thermal bath, Lake Ouachita State Park, a tranquil retreat situated on 40,000 acres perfect for boating, fishing, and hiking. Oaklawn Racing Casino is a year-round attraction for Hot Springs featuring both thoroughbred racing and casino gambling. In 2021, Oaklawn completed a $100 million expansion that included a 400-room luxury hotel, 4-star rated spa and +/-15,000 sq. ft. event center. Magic Springs Amusement Park is in Hot Springs which is an expansive water & theme park with roller coasters, waterslides, and summer concerts. Located less than 1 mile south of the subject property is Lake Hamilton (7,200 acres of surface area) that is home to resorts, vacation rentals, and waterfront restaurants. Over 100 national retailers are in the immediate area of the subject property such as Wal Mart, Lowe’s, TJ Maxx, Old Navy, Sam’s Club, Best Buy, Dick’s Sporting Goods, Bed Bath & Beyond, PetSmart, Hobby Lobby, and many more. Attractive area demographics with population of 23,805 within a 3-mile radius of the subject property and Average Household Income of $85,636 within this same radius.