Fred's

Interested in selling your Fred's NNN property or Fred's lease property and was wondering what you can get for it in today’s changing market?

Contact us for a complimentary broker opinion of value for your off-market Fred’s NNN property for sale or Fred’s ground lease property for investment, specifically tailored to support your 1031 exchange requirements. This valuable assessment will provide you with the necessary clarity to make informed decisions regarding the sale of your Fred’s NNN property or the inclusion of a Fred’s ground lease property in your investment portfolio. As specialists in working with 1031 exchange buyers seeking off-market Fred’s properties, we are dedicated to delivering competitive offers with reduced fees to help you maximize your investment returns.

Fred's logo

Number of locations

Fred’s has over 1,500 stores in 11 southeastern United States.

Revenue and income

In 2022, Fred’s total revenue was $1.2 billion. Net income was $20 million.

Future plans

Fred’s plans to expand its store count in the southeastern United States. The company also plans to open new stores in other parts of the country.

Corporate vs. franchise 

About 90% of Fred’s stores are franchised. The remaining 10% are corporate-owned. Franchisees typically pay a $25,000 franchise fee and 5% of gross sales as royalties.

Additional information Fred’s Properties

Fred’s was founded in 1928 in Nashville, Tennessee.
The company’s name refers to the fact that the first store was founded by two brothers named Fred and Charles.
Fred’s is a regional convenience store chain focusing on fresh food and pharmacy services.
The company’s most popular products include hot dogs, pizzas, and rotisserie chicken.

Fred’s History

Fred’s traces back to 1928 when two brothers named Fred and Charles founded the first store in Nashville, Tennessee. The company’s name refers to the fact that the first store was founded by two brothers named Fred and Charles. Today, Fred’s is a regional convenience store chain with over 1,500 stores in 11 states in the southeastern United States. The company’s most popular products include hot dogs, pizzas, and rotisserie chicken.

Why Invest in Ground Lease and NNN Lease of Fred’s?

Investing in Fred’s ground lease and triple net (NNN) lease properties offer compelling reasons:

1) Fred’s NNN Property Investment: Stable income

Fred’s NNN Property Investment is an opportunity that offers investors a consistent and reliable source of income. With a well-established brand and a strong presence in the market, Fred’s is a trusted choice for those seeking stability in their investment portfolio. This stability is primarily attributed to the nature of Ground and NNN leases that Fred offers, which provide predictable cash flows over the long term. Investors often gravitate towards NNN (Triple Net Lease) properties because of the steady income they can generate, and Fred’s NNN Property Investment aligns perfectly with this preference. The appeal lies in the fact that tenants are responsible for covering the rent and property expenses, including taxes, insurance, and maintenance. As an investor in Fred’s NNN Property Investment, you can expect a hassle-free income stream as the tenant takes on the financial responsibilities associated with property ownership.

2) Fred’s NNN Property Investment: Established tenant

One of the key factors that set Fred’s NNN Property Investment apart is the presence of an established and reliable tenant. Fred’s is not just any tenant; it’s a sizable, well-established business with a proven track record of making timely rent payments. For investors, this translates to reduced risk – the risk of vacancy or lease default is substantially minimized when you partner with a tenant as reputable as Fred’s. In real estate investments, the tenant’s reliability can make or break the deal. You can be sure that Fred’s won’t hurt their contract when they are your tenant, which gives you peace of mind. This stability can provide peace of mind and a consistent income stream for the long term.

3) Fred’s NNN Property Investment: Low management responsibility

Investing in Fred’s NNN Property Investment means enjoying the benefits of real estate ownership without the typical management responsibilities. In a NNN lease agreement, the tenant assumes the role of caretaker for the property, handling all associated costs and upkeep. This arrangement ensures a steady flow of income and liberates your time and resources for other ventures or pursuits. Imagine investing in real estate without the day-to-day headaches of property management. Fred’s NNN Property Investment allows you to do just that, making it an attractive choice for investors who seek to minimize their involvement in the operational aspects of property ownership.

4) Fred’s NNN Property Investment: Favorable lease terms

Investors are often drawn to Fred’s NNN Property Investment due to its advantageous lease terms. Fred’s typically provides long-term leases with built-in rent escalations. This combination guarantees investors a predictable income stream while presenting the potential for rental growth. The extended lease agreements mean you won’t have to constantly seek new tenants or negotiate lease terms, saving you time and effort. Moreover, the built-in rent escalations can help your investment keep pace with inflation and yield even higher returns. Fred’s NNN Property Investment attracts those who value stability and long-term growth.

5) Fred’s NNN Property Investment: Real estate value

Fred’s stores are strategically located in high-traffic areas, and this strategic positioning can increase the property’s value over time. As an investor in Fred’s NNN Property Investment, you can benefit from potential capital appreciation in addition to the steady income generated by the lease. Combining a well-recognized brand, reliable tenants, and prime locations adds significant value to your NNN property investment. Over the years, the appreciation in real estate value can further enhance the overall return on your investment. Fred’s NNN Property Investment not only ensures a stable income but also offers the potential for your investment to grow in value.

Pros and Cons of Fred’s Ground Lease and NNN Lease Investment

Pros:

1. Stable income from a well-established brand.
2. Established tenant reduces vacancy and lease default risks.
3. Minimal management responsibility for landlords.
4. Long lease terms provide stability and potential income growth.

Cons:

1. Lease renewal risk when the term expires.
2. Dependency on Fred’s success and operational challenges.
3. Market saturation and competition affect profitability.
4. Limited control over property decisions.
5. Economic and market risks inherent in real estate investments.

Thorough due diligence and consideration of location, lease terms, tenant strength, and investment strategy are essential. Seek guidance from real estate professionals and financial advisors to align with your goals and risk tolerance.

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