MEMPHIS—A 2,664 square-foot net leased Wendy's property in Chattanooga, TN has changed hands. The retail asset sold for $1.175 million.

Marcus & Millichap investment associate Edward Otocka and executive vice president of Investments Glen Kunofsky, both from the Manhattan office, along with investment associate Anne Williams in Memphis office, had the exclusive listing to market the property on behalf of the seller. The seller was a private investor. The name of the buyer was not disclosed.

“We ran a competitive process and received multiple offers from exchange buyers and opportunistic investors,” says Otocka. “The low cap rate we were able to achieve for the seller is indicative of the demand for lower price point, QSR product, even though the operator represents a smaller franchisee credit.”

The Chattanooga Wendy's is located at 4500 Highway 58. The net leased property sits on a 0.45-acre parcel, on a hard corner, less than one-half mile from a major area highway. This Wendy's is in a strong retail corridor with good visibility and high traffic counts.

“As the market continues to thrive, we have seen a general shift in consumer sentiment regarding franchisee credit,” says Kunofsky. “The goal of buyers to attain their desired capitalization rates in a competitive marketplace has created a greater appetite for shadow, franchisee, and smaller credits.”