SRS National Net Lease Group is pleased to offer the opportunity to acquire the fee simple interest (land & building ownership) in an absolute NNN leased, franchisee and personally guaranteed, drive-thru equipped, Schlotzsky’s investment property located in Henderson, TX. The tenant will execute a brand new 15-year lease with 4 (5-year) options to extend at the close of escrow (sale leaseback), demonstrating their strong commitment to the site. The lease will feature 1.00% annual rental increases throughout the initial term and option periods, steadily growing NOI and hedging against inflation. The lease is absolute NNN with zero landlord responsibilities making it an ideal, management free investment opportunity for an out of state investor. The property was constructed in 2018 (est.), featuring state-of-the-art construction and a modern design. This location is the new “Austin Eatery” concept with an expanded menu that offers tacos, sliders, and beer & wine. The store is franchisee guaranteed by one of the top franchisees in the Schlotzsky’s system with great rent to sales ratios and above average store sales (contact Agent for more details). In addition, the operating partners will personally guaranty the store for the initial 5-years with a combined net-worth in excess of $20MM. The operator is currently expanding with several sites under construction, 3 of which will be open by Q1 2020.
The Schlotzsky’s is strategically situated along U.S. Highway 79 with 23,400 vehicles passing by daily. The site is easily accessible from both adjacent roads and features a large pylon sign, increasing visibility to the subject property. Schlotzsky’s is also equipped with a drive-thru lane, providing ease and convenience for customers. On average, stores with drive-thru lanes have higher sales than those without. Nearby national/credit tenants include a 24-hour Walmart Supercenter, Lowe’s Home Improvement, Kroger, Tractor Supply Co., CVS Pharmacy, and more, increasing consumer traffic to the trade area. The 5-mile trade area is supported by a dense population of approximately 19,000 residents and 9,000 employees. The 3-mile population boasts an average household income of nearly $70,000