Investment Summary
Price | $3,575,000 |
Cap Rate | |
NOI | |
Lease Term | 5+ years remaining |
Lease Type | Absolute NNN ground lease, with tenant responsible for all taxes, insurance, maintenance, and repair, including roof, structure, and parking lot |
Rental Increases | 10% rental increases every five (5) years |
Year Built | 2004 |
Building Size | 7,917 SF |
Lot Size | 1.365 acres (59,459 SF) |
Status | Sold |
Lead Brokers | Vincent Aicale Executive Managing Director 415.690.5522 vince.aicale@cushwake.com CA RE License #01728696 Michael T. Yuras, CCIM Vice Chairman 415.481.0788 michael.yuras@cushwake.com CA RE License #01823291 Ryan Forsyth Executive Managing Director 415.413.3005 ryan.forsyth@cushwake.com CA RE License #01716551 Scott Crowle Executive Managing Director 415.604.4288 scott.crowle@cushwake.com CA RE License #01318288 |
Investment Highlights
LONG-TERM ABSOLUTE NNN GROUND LEASE TO LONG-STANDING TENANT
» Long-term absolute NNN ground lease to a strong tenant with 5+ years remaining
» Strong operating history at this location
» Site features a curbside pick-up and patio for added customer convenience
» Chuy’s (NASDAQ: “CHUY”) has an annual revenue of $396.5M and operates over 96 locations
» Chuy’s plans to open a total of five to eight restaurants during fiscal year 2022
» 10% rental increases every five years, providing a hedge against inflation
» Texas is an income tax-free state
PROMINENT LOCATION WITH EXCELLENT FREEWAY VISIBILITY
» Prominent location along Interstate 69/Eastex Freeway with excellent freeway visibility and access to 177,646 vehicles per day
» Strategic location in a strong retail corridor next to Deerbrook Crossing and Deerbrook Mall, with nearby notable tenants such as Walmart Supercenter, Costco Wholesale, Sam’s Club, Target, The Home Depot, Kroger, CVS, Chick-fil-A, and numerous others
» Less than a mile from Hampton Inn Houston/Humble-Airport Area (86 guestrooms), Fairfield Inn & Suites by Marriott (62 guestrooms), and Country Inn & Suites by Radisson (62 guestrooms)
» Within three miles of several hospitals including Memorial Hermann Northeast Hospital (255 beds), HCA Houston Healthcare Kingwood (419 beds), and Townsen Memorial Hospital
» Minutes from Lone Star College-Kingwood (approx. 11,330 students), part of the Lone Star College system which adds nearly $3 billion annually to the Houston economy
DENSELY POPULATED LOCATION IN LARGE HOUSTON MARKET
» 146,684 residents within a five-mile radius (31% growth since 2010)
» $100,591 average annual household income within five miles (projected 16% increase by 2027)
» Gateway to Downtown Houston (the fourth-most populous city in the U.S. with over 2.3 million residents)
» Six miles from George Bush Intercontinental Airport, ranked #3 World’s Best Airport with 30- 40 million passengers
» Houston airports (George Bush Intercontinental Airport William P. Hobby Airport, and Ellington Airport) served 45 million passengers in 2021
» Houston Airports forms one of North America’s largest public airport systems and positions Houston as the international passenger and cargo gateway to the South-Central United States and as a primary gateway to Latin America
Property Description
Sold
» This Chuy’s is prominently located along Interstate 69/Eastex Freeway with excellent freeway visibility and access to 177,646 vehicles per day
» The property is well-positioned in a strong retail corridor next to Deerbrook Crossing and the Deerbrook Mall, with nearby notable tenants such as Walmart Supercenter, Costco Wholesale, Sam’s Club, Target, The Home Depot, Kroger, CVS, Academy Spots+ Outdoors, Chick-fil-A, and numerous others
» The property is located less than a mile from Hampton Inn Houston/Humble-Airport Area (86 guestrooms), Fairfield Inn & Suites by Marriott (62 guestrooms), and Country Inn & Suites by Radisson (62 guestrooms)
» The site is within three miles of several hospitals including Memorial Hermann Northeast Hospital (255 beds), HCA Houston Healthcare Kingwood (419 beds), and Townsen Memorial Hospital
» The location is conveniently situated minutes from Lone Star College-Kingwood (approx. 11,330 students), part of the Lone Star College system which adds nearly $3 billion annually to the Houston economy
» Area has experienced a significant population growth of 31% since 2010 with the average annual household income of $100,591 within five miles projected to increase 16% by 2027
» 21.2 miles from Houston, the fourth-most populous city in the U.S. with over 2.3 million residents
» Beneficial proximity to George Bush Intercontinental Airport (ranked #3 World’s Best Airport), William P. Hobby Airport, and Ellington Airport, which served 45 million passengers in 2021