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Fred’s NNN Investor Hub | Cap Rate Trends, Credit Rating Trends, Lease Terms & Due Diligence

Fred's NNN Properties Former Fred's Properties Fred's net lease properties Fred's commercial real estate Fred's investment property Fred's cap rates Fred's lease terms Fred's 1031 exchange

Last Year Cap

6.5%

This Year Cap

6.7%

Cap Change

0.3%

Fred's – NNN Cap Rate Trend

Cap Rate Trends

wdt_ID wdt_created_by wdt_created_at wdt_last_edited_by wdt_last_edited_at Tenant Year Cap Rate
5779 admin2 2026 04:17 AM admin2 2026 04:17 AM 7 Brew 2,020 6.5
5780 admin2 2026 04:17 AM admin2 2026 04:17 AM 7 Brew 2,021 6.3
5781 admin2 2026 04:17 AM admin2 2026 04:17 AM 7 Brew 2,022 6.0
5782 admin2 2026 04:17 AM admin2 2026 04:17 AM 7 Brew 2,023 6.3
5783 admin2 2026 04:17 AM admin2 2026 04:17 AM 7 Brew 2,024 6.6
5784 admin2 2026 04:17 AM admin2 2026 04:17 AM 7 Brew 2,025 6.6
Tenant Year Cap Rate
1031 Exchange
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Credit (what net-lease buyers care about)

Credit Snapshot

Fred's

Cap Rates NNN
Last Year 6.5%
This Year 6.7%
Change 0.3%
S&P Rating CREDIT
Last Year NR
This Year NR
Change No Change

Fred's Net Lease: Secure, Essential Investment

Fred’s was a U.S. discount retailer and pharmacy operator that operated a large network of stores across the Southeast. The company filed for Chapter 11 in September 2019 and subsequently completed a court-supervised liquidation in June 2020. This guide reviews former Fred’s properties, historical lease structures, property-level considerations, and key due diligence factors for buyers and sellers.

For 1031 exchange buyers, Former Fred’s Properties can be evaluated as potential replacement or disposition assets based on current ownership, lease status, property condition, location fundamentals, and re-tenanting potential. Fred’s bankruptcy proceedings included court-authorized sales of store properties, making the current ownership and lease status particularly important to verify for each property.

Investors evaluating former Fred’s assets should consider:

  • Property-Level Income Potential
  • Established Retail Locations
  • Re-Tenanting Potential
  • 1031 Exchange Compatibility

Former Fred’s Properties for 1031 Exchange Buyers

Former Fred’s properties can have materially different investment characteristics depending on whether a property is currently leased, vacant, owner-occupied, or re-tenanted. 

Fred's Investment Market Statistics

AVERAGE SALE PRICE

$1,123,500

BUILDING SIZE

14,000 – 18,495 SF

AVERAGE NOI

$6 – $8/SF/YR

LAND

1.0 – 6.0 acres

$/SF RANGE

$39 – $116

LEASE TERM SHOWN

20 years

Fred's Investor Snapshot (Quick Facts)

Origins & Growth (Past)

• Founded in 1852 during Gold Rush
• Expanded nationwide through acquisitions
• Built large retail banking network
• Prime urban and suburban locations
• Adopted digital and mobile banking
• Leading U.S. banking institution

 

Where Fred’s Stands Today

• Extensive U.S. banking footprint
• Leading retail and commercial bank
• High daily customer transactions
• Primarily corporate-operated branches
• Expanding digital banking platforms
• Focus on efficiency and cost control

Where Fred’s Stands Today

• More digital banking adoption
• Increased automation & efficiency
• Growth in mobile platforms
• Stronger customer engagement
• Optimized branch footprint
• Focus on core lending services
• Benefiting from financial demand trends

 

Why investors buy Fred's NNN Properties or Fred's ground Lease Properties?

Pros (what buyers like)

    • Established Retail Locations
      Existing retail sites with commercial infrastructure

    • Re-Tenanting Potential
      Opportunity to attract new tenants

    • Existing Site Improvements
      Parking and retail-ready layouts

    • 1031 Exchange Potential
      Potential replacement-property option

Cons (what can bite you)

  • No Current Fred’s Tenant
    Fred’s completed liquidation in 2020

  • Re-Tenanting Risk
    Leasing may take time

  • Property-Specific Risk
    Lease and condition vary

  • Conversion Costs
    Improvements may be needed

Find out more

Fred's NNN Properties Former Fred's Properties Fred's net lease properties Fred's commercial real estate Fred's investment property Fred's cap rates Fred's lease terms Fred's 1031 exchange

Fred's Background & History

Fred’s was founded in 1947 and grew into a discount general merchandise and pharmacy retailer focused primarily on small and mid-sized communities across the southeastern United States. At its peak, the company operated hundreds of stores and pharmacies, with many locations serving smaller markets where Fred’s provided convenient access to everyday merchandise and pharmacy services. SEC

The company combined discount retail, pharmacy services, and convenience-oriented store formats. Many stores were freestanding and positioned in convenient retail or residential areas, creating a substantial portfolio of commercial real estate locations. SEC

Fred’s filed for Chapter 11 bankruptcy protection on September 9, 2019. Its liquidation plan became effective on June 19, 2020, and the company’s equity interests were cancelled. SEC

Why Former Fred’s Properties Matter to Investors

Former Fred’s locations can remain relevant from a commercial real estate perspective because properties may offer established retail sites, existing building improvements, parking, access, and locations within smaller community trade areas.

For investors, the focus is no longer on Fred’s corporate credit but on the individual property’s current status, location quality, market value, and re-tenanting potential.

Properties should be evaluated based on visibility, access, surrounding population, nearby retailers, building condition, available parking, and potential alternative uses.

What Buyers and Sellers Should Evaluate

Common considerations include Fred’s real estate, former Fred’s properties, Fred’s commercial real estate, Fred’s NNN properties, Fred’s lease history, and Fred’s 1031 exchange opportunities.

Buyers should verify whether each property is vacant, leased to a replacement tenant, or subject to another existing arrangement. They should also review current rent, lease term, landlord responsibilities, property taxes, insurance, maintenance requirements, deferred capital expenditures, and potential re-tenanting costs.

Location fundamentals are equally important. Investors should evaluate traffic, visibility, ingress and egress, surrounding demographics, competing retail properties, market rents, and demand from potential replacement tenants.

Corporate vs. Franchise | Store Count

Fred’s operated primarily through company-owned stores, with a smaller franchised network. As of February 2018, Fred’s reported 584 company-owned stores and 12 franchised stores across 15 states, primarily in the Southeast. Many locations served small and mid-sized communities and combined general merchandise with pharmacy services. Fred’s later entered Chapter 11 and completed its liquidation in 2020. For former Fred’s properties, investors should now focus on current ownership, lease status, location quality, and re-tenanting potential rather than historical store count.

Fred's Financial Snapshot

Fred’s was a publicly traded discount retailer and pharmacy operator before filing for Chapter 11 in September 2019. The company’s liquidation plan became effective on June 19, 2020, and its outstanding equity interests were cancelled. Historically, Fred’s generated revenue through general merchandise and pharmacy operations across its retail network. For today’s former Fred’s properties, buyers should evaluate property-level income, current market rents, operating expenses, capital requirements, property value, and re-tenanting potential rather than relying on Fred’s historical corporate financial position

Fred's Lease Types

Fred's Lease Types Fred’s operated through a combination of owned and leased retail locations, with lease structures and property arrangements varying by site. For former Fred’s properties, investors should carefully review the current lease status, remaining term, rental obligations, renewal options, and landlord responsibilities. Property condition, taxes, insurance, maintenance requirements, and any deferred capital expenditures should also be considered. For vacant locations, buyers should evaluate re-tenanting costs, market demand, potential renovations, and alternative property uses before making an investment decision.

our team of experts are here for you

Our team helps investors evaluate NNN properties with practical, market-based guidance. In addition, we support buyers and sellers with lease review, pricing analysis, and due diligence strategy.

Whether you are comparing Fred’s ground lease properties or fee simple Fred’s  assets, we can help you review the details that affect risk and long-term value. As a result, clients can make more confident decisions based on lease structure, location quality, and investment goals.

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