742 Forest Avenue, Luverne, AL
CAP Rate: 6.50%
Net Operating Income: $79,872
Lot Size: 1.43 AC
Year Built: 1985
The Hardee’s located at 742 South Forest Avenue, Luverne, Alabama. Luverne is the county-seat of Crenshaw County and is a part of the Montgomery MSA. The building is 3,616 square feet and resides on 1.43 acres of land. Built in 1985, the subject property offers ample on-site parking. Leased to second largest operator in the nation, PARADIGM INVESTMENT GROUP, LLC dba HARDEE’S RESTAURANT for 19 years from September 29, 2006 until October 30, 2025 (8+ years remaining). The current net annual rent of $79,872.00 increases by 2% every year throughout the primary term.
The lease is absolute net with the tenant paying all expenses including taxes, insurance, maintenance as well as roof and structure. There are four 5-year options to renew at 95% of fair market value, but not less than 102% of the prior year’s rental. The current tenant’s rent-to-sales ratio is at a very strong 6.12%.
Luverne is a city in and the county seat of Crenshaw County, Alabama, United States. The community bills itself as “The Friendliest City in the South”
The site sits on U.S. Route 331 is a spur of U.S. Route 31. It currently runs for 151 miles from Montgomery, Alabama.