For Sale
$3,545,000

3720 North StNacogdoches, TX 75965

Texas Retail Property, Strong ROI

Overview

Added:
Dec 11, 2024
Days on market:
117
This exceptional investment opportunity presents a 3,148 square foot Freddy's Frozen Custard restaurant in Nacogdoches, Texas. Located on a 2.17-acre lot at 3720 North St, 75965, this property boasts a prime location in a high-traffic retail corridor, less than one mile from Stephen F. Austin State University. The property, built in 2023, features a modern design consistent with Freddy's latest prototype and benefits from a long-term, absolute NNN lease with Ram-Z Custard, LLC, the seventh largest Freddy's franchisee in the US. The lease has 19 years remaining on the initial 20-year term, with four 5-year renewal options and attractive 7% rent bumps every five years. The property's strong performance is further supported by the tenant's ownership and operation of 67 locations, including 33 Freddy's and 34 Schlotzsky's restaurants. With a current NOI of $195,000 and a 5.50% cap rate, this offering presents a compelling investment opportunity in a thriving market. The property enjoys excellent visibility and accessibility, with daily traffic counts exceeding 24,890 vehicles. Surrounding the property are numerous national retailers, including Walmart, Lowe's, and AMC Theatres, further enhancing its desirability and potential for continued success. The Nacogdoches area boasts a 2023 population of 36,196 and an average household income of $78,092, indicating a strong and affluent demographic base. This single-tenant, fee-simple ownership includes both the building and land, offering a secure and stable investment with significant long-term growth potential. The property is zoned C.

Highlights

  • 19-year remaining term on a 20-year Absolute NNN lease with 7% rent increases every 5 years and four 5-year renewal options.
  • Tenant is Ram-Z Custard, LLC, the 7th largest Freddy's and largest Schlotzsky's franchisee in the US (67 total units), providing strong lease performance support.
  • New Freddy's prototype, opened October 2023, located in a prime retail corridor less than one mile from Stephen F. Austin State University.
  • 2.17-acre lot with high visibility and traffic counts exceeding 24,890 vehicles per day (VPD), situated across from an AMC Theatres-anchored center.
  • Strong demographics: 2023 population of 36,196 and average household income of $78,092.

Property Details for 3720 North St

Property type
Retail properties, Restaurants
Square Feet
3,148 SF
Year Built
2023
Buildings
1
Stories
1
Lot Size (sq. ft)
94,525 SF
Units
1

Location Insight

City
Nacogdoches
County
Nacogdoches
State
Texas
Latitude
31.63871
Longitude
-94.6531882
3720 North St, Nacogdoches, Texas

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3720 North St
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