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Texas Roadhouse Ground Lease, Decatur, AL

Texas Roadhouse Ground Lease

Price $2,200,000
Cap Rate 5.00%
NOI $110,000
Lease Term 15 Years, with 11 Years Remaining
Lease Type Absolute NNN, with Tenant Responsible for all Taxes, Insurance, Utilities, and Maintenance, Including Roof, Structure, and Parking Lot
Rental Increases 10% Rental Increases Every Five (5) Years
Year Built 2015
Building Size 7,163 SF
Lot Size 2.30 Acres (100,188 SF)
Status Available
Lead Broker Information Michael T. Yuras, CCIM
Cushman & Wakefield
415.481.0788
michael.yuras@cushwake.com
CA RE License #01823291

Scott Crowle
Senior Director
415.604.4288
scott.crowle@cushwake.com
CA RE License #01318288

Vincent Aicale
Cushman & Wakefield
415.690.5522
vince.aicale@cushwake.com
CA RE License #01728696

Ryan Forsyth
Cushman & Wakefield
415.413.3005
ryan.forsyth@cushwake.com
CA RE License #01716551

Investment Highlights

LONG-TERM ABSOLUTE NNN CORPORATE GROUND LEASE TO NOTABLE NATIONAL TENANT
» 11 years remaining in initial term, plus three five-year option periods
» 10% rental increases every five years in initial term and option periods, with a scheduled increase coming in June 2020
» No landlord management, ideal for an out-of-area investor
» Texas Roadhouse (NASDAQ: “TXRH”) has annual revenues of $2.2 billion and operates 580 locations
» Texas Roadhouse has extremely strong store sales; average store sales for 2017 are $4,973,00, representing an 18.8% increase over the past four years
» According to Texas Roadhouse 10K, the average capital investment for a new store is $5,250,000; the listing price for the subject property is roughly 40% of the company’s average capital investment

HIGH-TRAFFIC LOCATION IN DENSE RETAIL CORRIDOR
» Excellent visibility and access to 39,430 vehicles per day at the signalized intersection of Veterans Drive Southeast and Beltline Road Southeast
» Just off the highly trafficked intersection of Beltline Road and 6th Avenue, with 72,940 vehicles per day
» Within walking distance of the Crossings of Decatur, a regional power center anchored by Target, Ross, PetSmart, Old Navy, and Kirkland’s

STRONG CUSTOMER BASE IN AREA
» Near Decatur Morgan Hospital, one of the region’s largest employers, with 1,365 employees
» Surrounded by densely populated residential neighborhoods and industrial clusters, supporting strong residential and daytime populations
» Adjacent to Wheeler National Wildlife Refuge, among the 20 most visited refuges in the U.S., with 700,000 visitors per year

NEW CONSTRUCTION ON 2.30-ACRE PARCEL
» Built in 2015 by tenant at tenant’s expense, demonstrating long-term commitment to the location
» Large 2.30-acre parcel, allowing tenant to self-park



Property Description

The property is strategically located at the signalized intersection of Veterans Drive Southeast and Beltline Road Southeast, with excellent visibility and access to 39,430 vehicles per day. The property enjoys immediate access to 6th Avenue Southeast, a high-traffic roadway leading to downtown Decatur, with a traffic count of 33,510 vehicles per day near the property. Located in a dense retail and commercial corridor, the property is close the several large shopping centers. A Kroger-anchored center is directly across from the property, and the Crossings of Decatur—a regional power center anchored by Target, Ross, PetSmart, Old Navy, and Kirkland’s—is within walking distance. Notable retailers in the property’s immediate vicinity include Kohl’s, Ulta, Verizon, Olive Garden, Pep Boys, and more. Other national tenants—like Walmart Supercenter, Home Depot, Hobby Lobby, Academy Sports + Outdoors, Staples, Planet Fitness, Publix, and Aldi—are just a short distance away.

The property is centrally located less than three miles from downtown Decatur. Decatur Morgan Hospital, one of the region’s largest employers, is just minutes from the property. The area around the property is full of densely populated residential neighborhoods and industrial clusters, supporting strong residential and daytime populations. Additionally, the property is near popular recreational areas, including Decatur Country Club and Wheeler National Wildlife Refuge, which is visited by approximately 700,000 people each year.

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