5715 SE 15th St
Midwest City, OK 73110
Wendy's Ground Lease - Midwest City, OK · Retail Property For Sale

SHOP Companies is pleased to offer for sale a newly developed, unsubordinated Wendy’s ground lease investment property located in Midwest City, OK. The lease features no landlord responsibilities, 15.9 years of term remaining, and 10% rental increases every five years throughout the initial term and all renewal options. Further, this asset offers investors an attractive, fully-amortizing, non-recourse assumable loan at a fixed 4.0% interest rate, well below current debt pricing on new originations. Alternatively, to suit cash buyers or exchange buyers with no debt to replace, the loan can be paid off at closing, subject to yield maintenance.
The property is situated next door to Chick-fil-A, on an outparcel to Sooner Rose, the newest power center product added to the Midwest City trade area. Sooner Rose attracts 4.5M customer visits annually (TTM) and is anchored by the #1 Hobby Lobby in a 15-mile radius, the #1 Burlington in the Oklahoma City metro area, Academy Sports + Outdoors, and Regal Warren Cinemas. Home Depot is located directly across the street, and Walmart Supercenter is located just to the west.
The opportunity appears even more compelling considering the very low annual in-place rent. At only $68,000 in Year 1 and $74,800 currently, it's far less than comparable QSR and power center outparcel ground lease rents locally and for other Wendy's ground lease availabilities nationwide. This competitive advantage was made possible through a public-private partnership between the developer and the City of Midwest City, which included the establishment of a tax increment financing (TIF) district that provided funds for infrastructure and site improvements. That financing incentive allowed the developer to deliver product at a significantly reduced cost, savings it was able to pass on to the tenants in the form of lower rents than would otherwise be feasible.
This Wendy's location is operated by Meritage Hospitality Group, the largest Wendy’s franchisee in the world. Meritage Group (MHGU) operates 375 Wendy's locations across 15 states and has a 25-year history of success as a franchisee. Meritage’s dominant market position, operational scale, and strong balance sheet, coupled with their low occupancy cost, offer investors substantial risk mitigation and fortification of future income.