517 Third StLexington, KY 28372

For Sale
$2,642,000

Popeyes NNN Lease, High Growth Area

Overview

Added:
Dec 11, 2024
Days on market:
92
This exceptional investment opportunity presents a brand-new, 1,992 square foot retail building in Pembroke, Kentucky, currently leased to Popeyes Louisiana Kitchen. The property boasts a strong 6.15% cap rate and a substantial net operating income (NOI) of $162,500. The 15-year absolute NNN lease, commencing August 9th, 2024, and expiring August 30th, 2039, includes three five-year renewal options with a 10% rent increase every five years. This minimizes landlord responsibilities and provides consistent, predictable income. The building is situated on a high-traffic retail corridor, W. 3rd St (15,500 vehicles per day), and benefits from its proximity to UNC Pembroke, a university with over 7,500 students and 420+ faculty. The surrounding area shows robust retail performance, with over 325,000 square feet of retail space within a one-mile radius boasting 0% vacancy and over 3,700 square feet absorbed in the past year. Nearby national tenants include Jersey Mike's, Circle K, Cook Out, McDonald's, and Burger King. The asking price is $2,642,000, translating to $1,326.31 per square foot. Built in 2024, this property represents a secure, high-return investment in a thriving market. The 0.88-acre lot ensures ample space and visibility. Popeyes' strong performance, with 16.1% sales growth in Q3 2023 compared to Q3 2022, further solidifies this investment's potential. This is a turnkey opportunity for passive income generation.

Highlights

  • Strong lease terms.
  • New 15-year absolute triple-net (NNN) lease.
  • 10% rent increases every five years.
  • No landlord responsibilities.
  • Creditworthy, national tenant: Popeyes.
  • High-visibility location on a major retail corridor (W. 3rd St, 15,500 VPD).

Property Details for 517 Third St

Property type
Other retail properties, Retail properties
Square Feet
1,992 SF
Year Built
2024
Lot Size (sq. ft)
38,333 SF

Location Insight

City
Lexington
County
Fayette
State
Kentucky

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517 Third St
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