7304 Denton HwyWatauga, TX 76148

  • Retail properties
  • 3,782 SF
For Sale
$2,541,000 View listing

Property Details for 7304 Denton Hwy

Year built
2015
Lot size
1.23 AC
Property size (Sq ft)
3,782 SF
Property type
Retail properties
Property subtype
Drive through restaurants
APN
17388-1-5
APU
1738815

Description

This exceptional investment opportunity presents a 3,782 square foot McDonald's/CosMc's restaurant located at 7304 Denton Hwy, Watauga, TX 76148, in Tarrant County. The property sits on a sizable 1.23-acre lot and benefits from a strong 10.5-year remaining lease term (expiring 05/31/2035), commencing May 1, 2024, with a corporate guarantee from McDonald's. The lease is a triple-net (NNN) structure, offering investors significant passive income potential. The current asking price is $2,541,000, yielding a 5.00% cap rate, projected to increase to 4.40% after the first year due to a 10% rent increase in 2025, with further 10% increases every five years thereafter. The property underwent renovations in 2024 and boasts a 100% occupancy rate, generating a net operating income (NOI) of $127,050. The location is highly desirable, situated on Denton Highway, a major thoroughfare with over 45,000 vehicles per day, connecting Fort Worth and Denton. The surrounding area is affluent, with over 311,000 residents within a 5-mile radius and an average household income exceeding $137,000. This is only the third CosMc's location nationwide and the second in the Dallas-Fort Worth area, representing a unique and promising investment in a rapidly growing market. The lease includes five, five-year options to renew, providing long-term stability and growth potential. This is a motivated seller seeking a year-end closing.

Valuation
by Paperhouses methods

Valuation date:
Dec 11, 2024
  • CAP approach

    CAP return
    Valuation
    6%
    $1,053,418
    6.5%
    $972,386
    7%
    $902,930
  • Comparable approach

    Method
    Valuation
    Relative Method
    $1,101,054
    Geo Method
    $2,502,884
  • Alternative Use

    Use
    Valuation
    Residential
    $820,244
    Hospitality
    $751,339
    Educational
    $625,105
    Medical
    $646,604
    Retail
    $972,386
7304 Denton Hwy, Watauga, Texas

Location Insight

City
Watauga
County
Tarrant
State
Texas
Latitude
32.8782
Longitude
-97.2608
CBSA code
19100
CBSA name
DALLAS-FORT WORTH-ARLINGTON, TX METROPOLITAN STATISTICAL AREA

Property Tax & Assessments

Tax date
Tax Amount
Assessed Land Value
Assessed Improvement Value
Total Assessed Value
Applied Tax Rate
Land Market Value
Improvement Market Value
Total Market Value
2023
$31,951
$751,282
$823,718
$1,575,000
-
$751,282
$823,718
$1,575,000

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