6072 Stage Rd
Bartlett, TN 38134
Krispy Kreme Ground Lease · Retail Property For Sale

The subject property is a 2,671 +/- sf corporate Krispy Kreme Ground Lease located in a strong commercial corridor on Stage Road in Bartlett, TN, which is approximate 15 miles east of Memphis off Interstate 40. The subject property was a former Pizza Hut, which was scraped and a new Krispy Kreme was built in 2016. Directly behind the Krispy Kreme is a center that just signed a new lease with LA Fitness. Other outparcels to the new LA Fitness include McDonald’s, KFC, Honeybaked Ham, and Wendy’s. Directly across from the Krispy Kreme is a large Kroger anchored center, which also contains CATO, Petco, Five Below, Shoe Carnival, Game Stop, AT&T, Dollar Tree, Mattress Firm, O’Charley’s and Applebee’s. Other national retailers in the immediate corridor are Walgreens, Popeye’s, Regions Bank, Tuesday Morning, Bargain Hunt, and Malco Theatre. The demographics in the immediate area are above average, with a 1, 3, and 5-mile population of 9,400, 76,000 and 184,000 residents. In addition, the AHI in the 1-mile radius is nearly $73,000, and over $63,000 in the 3, and 5-mile radius. The Memphis metro contains nearly 1.4 million residents and more than 950,000 reside in Shelby County, where the Krispy Kreme is located. The metro is expected to add nearly 60,000 people through 2021, resulting in the formation of approximately 30,000 households. The metro’s centralized location and favorable business climate, including a low tax structure and right to work status, lure companies to the region. There are currently three Fortune 500 companies in Memphis, FEDEX, AutoZone, and International Paper. In addition, distribution and logistics comprise a significant portion of economic activity due to the metro’s location and intermodal capabilities. The metro houses headquarters and a hub for FEDEX, UPS, USPS, and also have 400 trucking firms operating locally. Krispy Kreme Doughnut Corporation signed a 20-year NNN Ground Lease that expires in July 2036 (nearly 19 years remaining) with 10% rental escalations every five years. Krispy Kreme Doughnuts, Inc. was acquired by JAB Beech in 2016, a controlled subsidiary of JAB Holding Company for $1.35 billion. JAB Holding Company, whose bonds are considered investment grade with a BBB+ S&P rating, is a privately held group with an extensive portfolio consisting of Panera Bread, Keurig Green Mountain, Caribou Coffee, Peet’s Coffee and Tea, Jimmy Choo, and Einstein Noah Restaurant Group. Krispy Kreme, established in 1937, currently operates over 1,300 locations in more than 25 countries and is headquartered in Winston Salem, NC.