7304 Denton HwyWatauga, TX 76148

Property Details for 7304 Denton Hwy

Year built

2015

Lot size

1.23 AC

Property size (Sq ft)

3,782 SF

Property type

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.

• 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

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

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