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t r a n s l a t e

Taco Cabana Net Lease Investment Opportunity | 5.3% Cap Rate

6311 Garth Road
Baytown, TX 77521
PRICE : $2,390,000
CAP RATE: 5.3%
PROPERTY TYPE: Retail
SITE SIZE: 0.97 Acres
BUILDING SIZE: 3,400 SF
YEAR BUILT: 2016

Highlights

  • Nearly 10 years remaining on a 15-year NNN ground lease with no Landlord responsibilities
  • Five 5-year options and 10% rent increases every 5 years
  • Popular Tex-Mex concept owned by publicly-traded Fiesta Restaurant Group (NASDAQ: FRGI), operating over 329 restaurants in 4 states and abroad
  • Outparcel to Kroger Marketplace in Baytown, TX, part of the Houston MSA
  • Located just off I-10 in a dense retail corridor with traffic counts of over 25,000 VPD
  • Nearby national tenants including Macy’s, Marshall’s, Tractor Supply, HEB, PetSmart, Academy Sports and more
  • Densely populated with over 109K within five-miles and household income of $75K+
  • Broker of Record, Victor Raldoph Reid, Reid Peevey Commercial Real Estate Company, TX License #333073

Description

This Taco Cabana NNN ground lease is an outparcel to the Kroger Marketplace in Baytown, Texas, in the Houston MSA. Many national credit tenants including Marshall’s, PetSmart, ULTA Beauty, T-Mobile, Tractor Supply Company, Panera Bread, Burlington, Academy Sports, Dairy Queen, Planet Fitness, and Kohl’s are nearby. The San Jacinto Mall, just off I-10, is also nearby and anchored by Macy’s and JCPenny.

This popular Tex-Mex dining concept has a 15-year NNN ground lease with 10 years remaining on the term, through April 2031 and five 5-year options. There are 10% rent increases every five years and in the option periods. As a NNN lease, there are no Landlord responsibilities.

The ± 3,400 SF building, located on an almost 1-acre parcel, was originally built by Fiesta Restaurant Group, the parent company, as their sister brand, Pollo Tropical. The location was rebranded and remodeled in 2016 to the current Taco Cabana concept. Within five miles, there is a population of 109,140 and an average household income of $75,620. Nearby traffic counts are 25,380 VPD on Garth Road.

Taco Cabana is a popular “made-to-order” Tex-Mex restaurant, owned by publicly-traded Fiesta Restaurant Group, which was established over 30 years ago, They currently have 329 locations in 4 states, the Caribbean and Central and South America.

This NNN offering is priced at $2,390,000 at an attractive 5.3% cap rate.

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