Stan Johnson Company, one of commercial real estate’s leading investment sales brokerage firms, has completed the sale of a freestanding Hardee’s restaurant located at 23598 5th Avenue in Florala, Alabama. The quick service restaurant is 3,490 square feet and was originally built in 1985. Mike Matter of Stan Johnson Company represented the seller, an individual investor from Seal Beach, California. The property was co-listed with Marcus & Millichap, which also represented the buyer, a private investor from Long Beach, California. The asset sold for $1.25 million, although the cap rate was undisclosed.
“This property was the down-leg of our seller’s 1031 exchange, and we were pleased to receive five offers in late April and early May during the height of the pandemic lockdown,” said Matter, Director in Stan Johnson Company’s Newport Beach, California office. “Despite the property offering a short-term lease, the buyer was motivated to add a higher yield net lease property to their portfolio, and we were able to negotiate a lease extension during escrow.”
The property is located in a small town on the Alabama-Florida border and is operated by one of the largest franchisees in the Hardee’s system. The restaurant sits on just less than one acre and operates on an absolute triple net lease.